The Allowance for Doubtful Debts Account Has a Credit Balance

Multiple Choice

The Allowance for doubtful debts account has a credit balance of $8500 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 $14,500.What will be the balance of the Allowance for doubtful debts reported on the balance sheet?

A) $6000
B) $13,050
C) $23,000
D) $14,500