Using the Aging-Of-Accounts-Receivable Method to Estimate Uncollectible Receivables, Records Management

Multiple Choice

Using the aging-of-accounts-receivable method to estimate uncollectible receivables, Records Management Corp. estimates that $8,000 of its accounts receivable will be uncollectible. Prior to adjustment, the Allowance for Uncollectible Accounts has a debit balance of $2,000. Bad debt expense to be reported on the income statement is:

A) $10,000
B) $2,000
C) $8,000
D) $6,000