Indy Sport and Hobby's Allowance for Doubtful Accounts Had an Unadjusted

Multiple Choice

Indy Sport and Hobby's Allowance for Doubtful Accounts had an unadjusted credit balance of $400.The manager estimates that $900 of the Accounts Receivable is uncollectible.Using the balance sheet approach,the year-end adjusting entry for Bad Debts Expense:

A) includes a credit to the Bad Debt Expense account for $500.
B) includes a debit to the Bad Debts Expense account for $900.
C) includes a credit to the Bad Debts Expense account for $1,300.
D) includes a debit to the Bad Debts Expense account for $500.