At the End of the Period,the Manager of Philly Electronics

Multiple Choice

At the end of the period,the manager of Philly Electronics estimated that $40,000 of its accounts receivable were uncollectible.If the Allowance for Doubtful Accounts has a credit balance of $11,200,which of the following sets forth the adjusting entry to record bad debts for the period?

A) Debit Bad Debt Expense and credit Accounts Receivable for $40,000
B) Debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $28,800
C) Debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $40,000
D) Debit Bad Debt Expense and credit Accounts Receivable for $28,800