Answer:
The amount of the adjusting entry for bad debts at December 31 is C. $91,000
Explanation:
Adjustment entry is made on changes on the amount of provision for doubtful debts.
Increase in amount of provision for doubtful debts increases the expenses in income statement.
Decreases in amount of provision for doubtful debts decreases the expenses in income statement.
Allowance for Doubtful Accounts Balance $35,000 (cr)
Allowance during th year $126,000
Increase in Allowance $ 91,000
$ 91, 000 increase in allowance for doubtful debts increases the expenses in Income Statement
