Reference no: EM132490958
Question 1: Allowance for Doubtful Accounts has a credit balance of $1,705 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $18,813. Which of the following entries records the proper adjustment for bad debt expense?
Option a. debit Bad Debt Expense, $20,518; credit Allowance for Doubtful Accounts, $20,518
Option b. debit Allowance for Doubtful Accounts, $17,108; credit Bad Debt Expense, $17,108
Option c. debit Bad Debt Expense, $17,108; credit Allowance for Doubtful Accounts, $17,108
Option d. debit Allowance for Doubtful Accounts, $20,518; credit Bad Debt Expense, $20,518