Allowance for Doubtful Accounts has a credit balance of $790 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 $15,733. Based on this estimate, which of the following adjusting entries should be made?

Select the correct answer.

a) debit Allowance for Doubtful Accounts, $16,523; credit Bad Debt Expense, $16,523

b) debit Bad Debt Expense, $14,943; credit Allowance for Doubtful Accounts, $14,943

c) debit Bad Debt Expense, $790; credit Allowance for Doubtful Accounts, $790

d) debit Allowance for Doubtful Accounts, $790; credit Bad Debt Expense, $790