A Company Has $90,000 in Outstanding Accounts Receivable and It

True/False

A company has $90,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts.Experience suggests that 6% of outstanding receivables are uncollectible.The current credit balance (before adjustments)in the allowance for doubtful accounts is $800.The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for $7,000.