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23 January, 15:52

Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment), and an analysis of customers' 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, $11,800; credit Allowance for Doubtful Accounts, $11,800

C. debit Allowance for Doubtful Accounts, $11,800; credit Bad Debt Expense, $11,800

D. debit Bad Debt Expense, $14,000; credit Allowance for Doubtful Accounts, $14,000

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  1. 23 January, 16:00
    0
    Answer: The following entries records the proper adjustment for bad debt expense:

    debit Bad Debt Expense, $14,000;

    credit Allowance for Doubtful Accounts, $14,000

    Given:

    Allowance for Doubtful Accounts has a debit balance = $1,100

    Uncollectible receivables = $12,900

    Therefore, the correct option is (d)
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