The Allowance for Doubtful Debts Has a Credit Balance of $8000

Multiple Choice

The Allowance for doubtful debts has a credit balance of $8000 before the adjusting entry for bad debt expense.After analysing the accounts in the accounts receivable subsidiary ledger using the ageing method,the company's management estimates that uncollectable accounts will be $15,000.What will be the amount of bad debts expense reported on the income statement?

A) $23,000
B) $8000
C) $15,000
D) $7000