Multiple Choice
Allowance for Doubtful Accounts has a debit balance of $600 at the end of the year (before adjustment) , and an analysis of accounts in the customers ledger indicates uncollectible receivables of $13,000. Which of the following entries records the proper adjusting entry for bad debt expense?
A) debit Bad Debt Expense, $600; credit Allowance for Doubtful Accounts, $600
B) debit Bad Debt Expense, $12,400; credit Allowance for Doubtful Accounts, $12,400
C) debit Allowance for Doubtful Accounts, $600; credit Bad Debt Expense, $600
D) debit Bad Debt Expense, $13,600; credit Allowance for Doubtful Accounts, $13,600
Correct Answer:
Verified
Correct Answer:
Verified
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