A company has $220,000 in accounts receivable at year end. An estimated 5% of receivables are uncollectable. If the Allowance for Doubtful Accounts has a $1,600 debit balance, the adjustment to record bad debts for the period will require a

Select one:

a.

debit to Allowance for Doubtful Accounts for $11,000.

b.

debit to Bad Debts Expense for $9,400.

c.

debit to Bad Debts Expense for $12,600.

d.

debit to Bad Debts Expense for $11,000.