An aging of a company's trade receivables indicates that $6,500 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 debit balance, the adjustment to record bad debts for the period will require a

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The adjustment to record bad debts for the period will require increasing the balance in the Allowance for Doubtful Accounts to cover the estimated uncollectible amount. Since the Allowance for Doubtful Accounts currently has a debit balance of $1,200, the adjustment will involve a debit to Bad Debts Expense for the total estimated uncollectible amount ($6,500) plus the current debit balance in the Allowance for Doubtful Accounts ($1,200), or $7,700. So, the correct option is B.

An Aging of a Company's Trade Receivables Indicates That $6,500