Allowance for Doubtful Accounts has a credit balance of $880 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $12,080. Which of the following entries records the proper adjustment for Bad Debt Expense?

Select the correct answer.

debit Allowance for Doubtful Accounts, $12,960; credit Bad Debt Expense, $12,960

debit Allowance for Doubtful Accounts, $11,200; credit Bad Debt Expense, $11,200

debit Bad Debt Expense, $11,200; credit Allowance for Doubtful Accounts, $11,200

debit Bad Debt Expense, $12,960; credit Allowance for Doubtful Accounts, $12,960