Question

Calculator Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year (before adjustment). The company prepares an analys of customers' accounts and estimates the amount of uncollectible accounts to be $31,900. Which of the following adjusting entries is needed to record the bad debt expense for the year? a. debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200 b. debit Allowance for Doubtful Accounts, $34,200; credit Bad Debt Expense, $34,200 c. debit Bad Debt Expense, $29,600; credit Allowance for Doubtful Accounts, $29,600 d. debit Allowance for Doubtful Accounts, $29,600; credit Bad Debt Expense, $29,600

Answer 1

a. debit Bad Debt Expense for $34,200; credit Allowance for Doubtful Accounts for $34,200.

Bad debt expense for the year = $31,900 + $2,300 = $34,200