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BaLLatris [955]
3 years ago
7

Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment), and an analysis of cus

tomers' accounts indicates uncollectible receivables of $12,900. Which of the following entries records the proper adjustment for Bad Debt Expense?
(A) debit Allowance for Doubtful Accounts, $14,000; credit Bad Debt Expense, $14,000(B) debit Bad Debt Expense, $14,000; credit Allowance for Doubtful Accounts, $14,000(C) debit Allowance for Doubtful Accounts, $11,800; credit Bad Debt Expense, $11,800 (D) debit Bad Debt Expense, $11,800; credit Allowance for Doubtful Accounts, $11,800
Business
1 answer:
Nesterboy [21]3 years ago
7 0

Answer:

(B) debit Bad Debt Expense, $14,000; credit Allowance for Doubtful Accounts, $14,000

Explanation:

allowance fordoubtful accounts 1,100 debit

expected uncollectible               12,900

adjustment                                 14,000

We have to adjust to react the 12,900 as ending balancefor the allowance so we have to adjust as much as it takes to be 12,900 balance.

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