Question


An aging of a companys accounts receivable indicates that $9,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $2.400 debit balance, the adjustment to record bad debts for the period will require a 1) debit to Bad Debt Expense for $9,000. 2) debit to Allowance for Doubtful Accounts for $11,400. 3) debit to Bad Debt Expense for $11,400. 4) credit to Allowance for Doubtful Accounts for $9.000.
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Answer #1

Journal entry :

Date account and explanation debit credit
Bad debt expense (9000+2400) 11400
   Allowance for doubtful accounts 11400

So answer is 3) debit to bad debt expense for $11400

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