The adjusting entry to record the estimated bad debts in the period credit sales occur includes a debit to an:
A)asset account and a credit to a liability account.
B)expense account and a credit to an asset account.
C)expense account and a credit to a revenue account.
D)expense account and a credit to a contra-asset account.

Question

Quizplus · Accepted Answer

The entry to record the estimated bad debts in the period credit sales occur includes a debit to Bad Debt Expense,an expense account,and a credit to the Allowance for Doubtful Accounts,a contra-asset account.

The Adjusting Entry to Record the Estimated Bad Debts in the Period