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

Multiple Choice

The Allowance for Bad Debts has a credit balance of $8000 before the adjusting entry for bad debts expense.After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of- receivables method,the company's management estimates that uncollectible accounts will be $15,000.What will be the amount of Bad Debts Expense reported on the income statement?

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