An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $4,000. If Allowance for Doubtful Accounts has a $1,200 debit balance, the adjustment to record the bad debt expense for the period will require a

Question

Quizplus · Accepted Answer

The adjustment to record the bad debt expense for the period will require a debit to Bad Debt Expense for $5,200. This is because the Allowance for Doubtful Accounts has a $1,200 debit balance, and the estimate of uncollectible accounts totals $4,000. Therefore, the additional amount of bad debt expense that needs to be recorded is $5,200 ($4,000 - $1,200).

An Aging of a Company's Accounts Receivable Indicates That the Estimate