An aging of a company's accounts receivable indicates that $4,000 is 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 the adjustment for bad debts, we need to increase the allowance for doubtful accounts and decrease the accounts receivable. The aging of the accounts receivable indicated that $4,000 is estimated to be uncollectible, so the Bad Debts Expense should be debited for $4,000. However, we already have a credit balance of $1,100 in the Allowance for Doubtful Accounts, so we only need to debit the allowance account for the remaining amount of $2,900 ($4,000 - $1,100). Therefore, the correct entry is to debit the Bad Debts Expense for $2,900 and credit the Allowance for Doubtful Accounts for $2,900. Answer choice C is the correct choice.

An Aging of a Company's Accounts Receivable Indicates That $4,000