An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $5,000. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record the bad debt expense for the period will require a

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The aging of accounts receivable indicates an estimated amount of uncollectible accounts of $5,000. However, the Allowance for Doubtful Accounts already has a credit balance of $1,200. Therefore, the adjustment to record the bad debt expense for the period will require a debit to Bad Debt Expense for the difference between these two amounts, which is $3,800 (i.e., $5,000 - $1,200). Therefore, the correct answer is B) debit to Bad Debt Expense for $3,800.

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