An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $6,400. If Allowance for Doubtful Accounts has a $1,300 debit balance, the adjustment to record the bad debt expense for the period will require a
A) debit to Bad Debt Expense for $7,700
B) debit to Bad Debt Expense for $6,400
C) debit to Bad Debt expense for $5,100
D) credit to Allowance for Doubtful Accounts for $1,300

Question

Quizplus · Accepted Answer

The adjustment requires a debit to Bad Debt Expense for $7,700 to account for both the existing $1,300 debit balance in the Allowance for Doubtful Accounts and the additional $6,400 estimated as uncollectible, totaling $7,700.

An Aging of a Company's Accounts Receivable Indicates That the Estimate