Allowance for Doubtful Accounts Has a Debit Balance of $980

Multiple Choice

Allowance for doubtful accounts has a debit balance of $980 at the end of the current year (prior to adjustment) . An analysis of the accounts in the customers' ledger indicates uncollectible accounts of $16,000. The adjusting entry would require a credit to:

A) bad-debt expense for $16,980.
B) allowance for doubtful accounts for $16,980.
C) allowance for doubtful accounts for $15,020.
D) accounts receivable accounts for $15,020.