A company has $107,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 5% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is a (n) $970 debit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for: $4,600
$5,400
$6,200
$6,800
None of these
what would be the correct answer choice?
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