Allowance for Doubtful Accounts Has a Credit Balance of $1,400

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $1,400 at the end of the year (before adjustment) . The company prepares an analysis of customers' accounts to estimate the amount of uncollectible accounts of $17,900. Which of the following adjusting entries would be made to record the Bad Debt Expense for the year?

A) debit allowance for doubtful Accounts, $16,500; credit Bad Debt Expense, $16,500
B) debit Allowance for Doubtful Accounts $19,300; credit Bad Debt Expense, $19,300
C) debit Bad Debt Expense, $19,300; credit Allowance for Doubtful Accounts, $19,300
D) debit Bad Debt Expense, $16,500; credit allowance for Doubtful Accounts, $16,500