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The Allowance for Doubtful Debts Account Has a Debit Balance

Question 70

Multiple Choice

The Allowance for doubtful debts account has a debit balance of $9000 before the adjusting entry for bad debt expense.After analysing the accounts in the accounts receivable subsidiary ledger,the company's management estimates that uncollectable accounts will be $13,000.What will be the amount of the adjustment in the Allowance for doubtful debts account?


A) $22,000
B) $13,000
C) $21,250
D) $20,900

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