Question

An aging of a company's accounts receivable indicates that $13900 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1230 credit balance, the adjustment to record bad debts for the period will require a

Answer 1

Answer:the adjustment to record bad debts for the period will require a

Debit on   Bad debt expenses for $ 12,670 and a credit To Allowance for doubtful accounts for  $ 12,670

Explanation:

Account receivables for uncollectibles= $13,900

Allowance for Doubtful Accounts = credit balance of $1230

Adjusting entry for bad debts expense =Account receivables - credit balance of $1230

= $13,900- $1,230

=$12,670

Adjusting entry for the record of  bad debts expense  

Accounts titles                 Debit                       Credit

Bad debt expenses $ 12,670

To Allowance for doubtful accounts             $ 12,670