On December 31, Prior to Adjustment, Allowance for Doubtful Accounts

Multiple Choice

On December 31, prior to adjustment, Allowance for Doubtful Accounts has a debit balance of
$400. An analysis of the aging of the accounts receivable produces an estimate of $3,100 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts is

A) $3,100.
B) $2,700.
C) $3,500.
D) $400.