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Problem 1: An aging of a company's accounts receivable indicates that the estimate of uncollectible receivables totals $7,900. If Allowance for Doubtful Accounts has a $700 credit balance, the adjustment to record the bad debt expense for the period will require a?Option 1: debit to Bad Debt Expense for $8,600
Option 2: debit to Bad Debt Expense for $7,900
Option 3: debit to Bad Debt Expense for $7,200
Option 4: credit to Allowance for Doubtful Accounts for $700
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