A company estimates that the total amount of uncollectible accounts based upon e

Question

A company estimates that the total amount of uncollectible accounts based upon existing accounts receivable should be $2,300. Assuming the company had an existing debit balance of $400 in its allowance for uncollectible accounts, bad debts expense would be recorded with a:

A. Credit to allowance for uncollectible accounts$400

B. Debit to bad debts expense $2,700

C. Debit to allowance for uncollectible accounts $2,700

D. Credit to allowance for uncollectible accounts 1,900

E. Debit to bad debts expense $2,300

Explanation / Answer

A. Credit to allowance for uncollectible accounts$400

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