NEED HELP ASAP An aging of a company\'s accounts receivable indicates that $4,00
ID: 2463557 • Letter: N
Question
NEED HELP ASAP
An aging of a company's accounts receivable indicates that $4,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a
credit to Allowance for Doubtful Accounts for $4,000.
debit to Bad Debts Expense for $4,000.
debit to Allowance for Doubtful Accounts for $2,800.
debit to Bad Debts Expense for $2,800.
credit to Allowance for Doubtful Accounts for $4,000.
debit to Bad Debts Expense for $4,000.
debit to Allowance for Doubtful Accounts for $2,800.
debit to Bad Debts Expense for $2,800.
Explanation / Answer
The adjustment to record bad debts for the period will require a debit to Bad Debts Expense for $ 2800.
i.e. $(4000-1200) = $ 2800
This amount will be debited as bad debts expense.
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