Adjustment to record bad debts

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An aging of a company's accounts receivable indicates that $3,000 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a:

a) debit to Bad Debts Expense for $3,000.

b) debit to Allowance for Doubtful Accounts for $1,800.

c) debit to Bad Debts Expense for $1,800.

d) credit to Allowance for Doubtful Accounts for $3,000.

Reference no: EM13136940

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