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21 March, 19:04

An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $4,000. If Allowance for Doubtful Accounts has a $800 credit balance, the adjustment to record the bad debt expense for the period will require aA. debit to Allowance for Doubtful Accounts for $3,200. B. debit to Bad Debt Expense for $3,200. C. debit to Allowance for Doubtful Accounts for $4,000. D. credit to Allowance for Doubtful Accounts for $4,000

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  1. 21 March, 19:34
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    B. debit to Bad Debt Expense for $3,200.

    Explanation:

    In the given question, the total of uncollectible accounts is $4,000 and the allowance for doubtful accounts has an $800 credit balance. The remaining amount which is left i. e $3,200 ($4,000 - $800) is debited to bad debt expense

    The journal entry is shown below:

    Bad debt expense A/c Dr $3,200

    To Allowance for Doubtful Accounts $3,200

    (Being bad debt expense recorded)
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