An aging of a company's accounts receivable indicates that $9,000 are estimated to be uncollectible.If Allowance for Doubtful Accounts has a $2,400 credit balance, the adjustment to record bad debts for the period will require a
A)debit to Bad Debt Expense for $9,000.
B)debit to Allowance for Doubtful Accounts for $6,600.
C)debit to Bad Debt Expense for $6,600.
D)credit to Allowance for Doubtful Accounts for $9,000.

Question

Quizplus · Accepted Answer

The adjustment needed is to bring the Allowance for Doubtful Accounts to the estimated uncollectible amount of $9,000. Since there is already a $2,400 credit balance, an additional $6,600 is needed, requiring a debit to Bad Debt Expense for $6,600.

An Aging of a Company's Accounts Receivable Indicates That $9,000