Answer:
Dr Bad debt expense 26,330
Cr Allowance for doubtful accounts 26,330
Explanation:
credit balance of allowance for doubtful accounts = $2,360
the correct balance should be $28,690, so the account must be adjusted by $28,690 - $2,360 = $26,330
Dr Bad debt expense 26,330
Cr Allowance for doubtful accounts 26,330
Allowance for doubtful accounts is a contra asset account with a credit balance that reduces the value of accounts receivable.
