In recording the year-end adjusting entry for bad debt expense,a company would do which of the following?
A)debit trade receivables.
B)credit trade receivables.
C)credit allowance for doubtful accounts.
D)debit allowance for doubtful accounts.

Question

Quizplus · Accepted Answer

The correct entry for recording bad debt expense is to credit the allowance for doubtful accounts, which is a contra-asset account that reduces the total accounts receivable balance to reflect the estimated uncollectible amounts.

In Recording the Year-End Adjusting Entry for Bad Debt Expense,a