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RSB [31]
3 years ago
7

Allowance for Doubtful Accounts has a credit balance of $2,100 at the end of the year (before adjustment), and an analysis of cu

stomers' accounts indicates uncollectible receivables of $19,700. Which of the following entries records the proper adjustment for bad debt expense?
English
1 answer:
salantis [7]3 years ago
5 0

Answer:

Debit Bad Debt Expense, $17,600

Credit Allowance for Doubtful Accounts, $17,600

Explanation:

Uncollectible receivables of $19,700.

Less Allowance for Doubtful Accounts has a credit balance at the end of the year (before adjustment) at $2,100

Balance $17,600

Therefore the following entries records the proper adjustment for bad debt expense

Debit Bad Debt Expense $17,600

Credit Allowance for Doubtful Accounts, $17,600

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