An Aging of a Company's Accounts Receivable Indicates the Estimate

Multiple Choice

An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $7,900. If Allowance for Doubtful Accounts has a $700 credit balance, the adjustment to record the bad debt expense for the period will require a

A) debit to Bad Debt Expense for $8,600.
B) debit to Bad Debt Expense for $7,900.
C) debit to Bad Debt Expense for $7,200.
D) credit to Allowance for Doubtful Accounts for $700.