Canteen Depot Estimated Uncollectible Accounts in the Amount of $900

Multiple Choice

Canteen Depot estimated uncollectible accounts in the amount of $900 for the period. There is a credit balance in the allowance account of $400. Under the aging of receivables method, the entry to record bad debts expense is:

A) debit Bad Debts Expense $500; credit Accounts Receivable $500.
B) debit Allowance for Doubtful Accounts $900; credit Bad Debts Expense $900.
C) debit Bad Debts Expense $500; credit Allowance for Doubtful Accounts $500.
D) debit Allowance for Doubtful Accounts $900; credit Accounts Receivable $900.