Allowance for Doubtful Accounts Has a Credit Balance of $800

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment) , and an analysis of accounts in the customer ledger indicates the estimated amount of uncollectible accounts should be $16,000. Based on the estimate above, which of the following adjusting entries should be made?

A) debit Bad Debt Expense, $800; credit Allowance for Doubtful Accounts, $800
B) debit Bad Debt Expense, $15,200; credit Allowance for Doubtful Accounts, $15,200
C) debit Allowance for Doubtful Accounts, $800; credit Bad Debt Expense, $800
D) debit Bad Debt Expense, $16,800; credit Allowance for Doubtful Accounts, $16,800