What adjusting entry will novak corp make

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Problem 1: Novak Corp. uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $430000 and credit sales are $1720000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Novak Corp. make if the Allowance for Doubtful Accounts has a credit balance of $4300 before adjustment?

A Bad Debt Expense    12900
Accounts Receivable  12900

B Bad Debt Expense 8600
Allowance for Doubtful Accounts 8600

C Bad Debt Expense 25800
Allowance for Doubtful Accounts 25800

D Bad Debt Expense 17200
Allowance for Doubtful Accounts 17200

Reference no: EM132962919

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