An aging of a company's accounts receivable indicates that $14,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a

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To record bad debts for the period, we need to increase the amount in the allowance account (which has a credit balance) to match the estimate of uncollectible accounts. Since the allowance account already has a credit balance of $1,100, we only need to increase it by $12,900 ($14,000 - $1,100). Therefore, the adjustment requires a debit to Bad Debt Expense for $12,900 and a credit to Allowance for Doubtful Accounts for $12,900. This will bring the balance in the allowance account to $14,000 ($1,100 + $12,900), which matches the estimated uncollectible amount.

An Aging of a Company's Accounts Receivable Indicates That $14,000