You have just analyzed customers' accounts receivable through an "aging" process and have determined that $3,000 of the accounts receivable are probably uncollectible. Noting that your trial balance shows an Allowance for Bad Debts with a debit balance of $100, what is the correct adjusting entry?

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The Allowance for Bad Debts needs to have a credit balance of $3,000 to cover the uncollectible accounts. Since it currently has a debit balance of $100, you need to credit it with $3,100 to offset the debit and achieve the desired credit balance. Therefore, the Bad Debt Expense should be debited by $3,100.

You Have Just Analyzed Customers' Accounts Receivable Through an "Aging Bad Debt Expense 3,100 Allowance for Bad Debts 3,100\begin{array}{ll}\text { Bad Debt Expense } & 3,100 \\\text { Allowance for Bad Debts } & 3,100\end{array} Bad Debt Expense Allowance for Bad Debts ​3,1003,100​

You Have Just Analyzed Customers' Accounts Receivable Through an "Aging $\begin{array}{ll}\text { Bad Debt Expense } & 3,100 \\\text { Allowance for Bad Debts } & 3,100\end{array}$