Question

Send to Gradebook < Prev Next > Question 20 --/1 View Policies Current Attempt in Progress An aging of a company's accounts receivable indicates that $14400 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1160 credit balance, the adjustment to record bad debts for the period will require a O debit to Allowance for Doubtful Accounts for $13240. O credit to Allowance for Doubtful Accounts for $14400. O debit to Bad Debt Expense for $14400. debit to Bad Debt Expense for $13240. Attempts: 0 of 1 used Save for Later Submit Answer Send to Gradebook

Answer 1

Correct answer----------Debit to vbad debts expense for $13240

Working

Estimated balance of allowance for uncollectables	$ 14,400.00	Cr
Balance in Allowance for uncollectable account (Cr)	$    1,160.00	Cr
Total bad debts to be recorded	$ 13,240.00	Cr

Complete entry will be as follows

General Journal	Debit	Credit
Bad debts expense	$        13,240.00
Allowance for doubtful accounts		$ 13,240.00
(To record bad debts expense)