Question
Allowance for Doubtful Accounts has a credit balance of $629 at the end of the year (before adjustment), and an analysis of accounts in the
Allowance for Doubtful Accounts has a credit balance of $629 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 $17,532. Based on this estimate, which of the following adjusting entries should be made?
Select the correct answer.
debit Bad Debt Expense, $16,903; credit Allowance for Doubtful Accounts, $16,903
debit Allowance for Doubtful Accounts, $629; credit Bad Debt Expense, $629
debit Bad Debt Expense, $629; credit Allowance for Doubtful Accounts, $629
debit Allowance for Doubtful Accounts, $18,161; credit Bad Debt Expense, $18,161
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