A business has an ending balance in Accounts Receivable of ($40,000;) credit sales for the year of

Question:

A business has an ending balance in Accounts Receivable of $$40,000;$ credit sales for the year of $$500,000;$ and a debit balance in Allowance for Bad Debts of $$300.$ If an aging analysis indicates that $$4,800$ should be the balance in Allowance for Bad Debts, the amount to be entered for the adjusting entry is

(a) $$4,800$.

(b) $$4,500$.

(c) $$5,000$.

(d) $$5,100$.

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