An aging of a company\'s accounts receivable indicates that $3,000 are estimated

Question

An aging of a company's accounts receivable indicates that $3,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 debit balance, the adjustment to record bad debts for the period will require a

Question 32 options:

debit to Bad Debt Expense for $4,200

debit to Bad Debts Expense for $3,000

credit to Allowance for Doubtful Accounts for $4,000.

debit to Bad Debts Expense for $1,800

debit to Bad Debt Expense for $4,200

debit to Bad Debts Expense for $3,000

credit to Allowance for Doubtful Accounts for $4,000.

debit to Bad Debts Expense for $1,800

Explanation / Answer

Estimated uncollectibles =$3,000.

Entry for bad debts expense is debit bad debt expense and credit allowance for doubtful accounts.

So, the adjustment to record bad debts for the period will require a debit to bad debts expense a/c for $3,000.

Answer is option b.

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