An aging of a company's accounts receivable indicates that $3,000 are 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 should bring the Allowance for Doubtful Accounts to the estimated uncollectible amount of $3,000. Since there is already a $1,200 debit balance, an additional $4,200 debit to Bad Debts Expense is needed to offset this and reach the $3,000 credit balance.

An Aging of a Company's Accounts Receivable Indicates That $3,000