The adjusting entry to record the estimated bad debts in the period credit sales occur would normally include a debit to:
A)Accounts Receivable and a credit to Allowance for Doubtful Accounts.
B)Bad Debt Expense and a credit to Allowance for Doubtful Accounts.
C)Allowance for Doubtful Accounts and a credit to Accounts Receivable.
D)Bad Debt Expense and a credit to Accounts Receivable.

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