Putnam Company's account balances at December 31 for Accounts Receivable and Allowance for Doubtful Accounts were $2,100,000 and $105,000 (Cr.), respectively. An aging of accounts receivable indicated that $192,000 are expected to become uncollectible. The amount of the adjusting entry for bad debts at December 31 is

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The adjusting entry for bad debts is the difference between the expected uncollectible amount ($192,000) and the existing credit balance in the Allowance for Doubtful Accounts ($105,000), which is $87,000.

Putnam Company's Account Balances at December 31 for Accounts Receivable