An aging of Bicycle Company's accounts receivable indicates that $20,000 is estimated to be uncollectible.
If Allowance for Doubtful Accounts has a $3,000 credit balance, the adjustment to record bad debts for the period will require a:

Question

Quizplus · Accepted Answer

Bad Debt Expense = $20,000 - $3,000 = $17,000
Thus, the adjustment to record bad debts for the period will be:
Bad Debts Expense 17,000
$\quad $ $\quad $ $\quad $ Allowance for Doubtful Accounts 17,000

An Aging of Bicycle Company's Accounts Receivable Indicates That $20,000