The Allowance for Bad Debts has a credit balance of $8,000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of- receivables method, the company's management estimates that uncollectible accounts will be $17,000. What will be the amount of Bad Debts Expense reported on the income statement?

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The adjusting entry needed to bring the Allowance for Bad Debts up to the estimated amount of uncollectible accounts is a debit of $9,000 ($17,000 - $8,000). This debit entry will be recorded as Bad Debts Expense on the income statement. Therefore, the amount of Bad Debts Expense reported on the income statement will be $9,000.

The Allowance for Bad Debts Has a Credit Balance of $8,000