Using the Aging Approach,management Estimates That 10% of the $30,000

Multiple Choice

Using the aging approach,management estimates that 10% of the $30,000 of Accounts Receivable will be uncollectible.The Allowance for Doubtful Accounts has a $300 unadjusted debit balance.The adjusting entry to record estimated bad debts includes a:

A) debit to Bad Debt Expense of $3,300.
B) debit to Bad Debt Expense of $2,700.
C) debit to Bad Debt Expense of $3,000.
D) credit to Allowance for Doubtful Accounts of $3,000.