Allowance for Doubtful Accounts has a debit balance of $770 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates uncollectible receivables of $17,254. Which of the following entries records the proper adjusting entry for bad debt expense?

Select the correct answer.

debit Bad Debt Expense, $770 credit Allowance for Doubtful Accounts, $770

debit Allowance for Doubtful Accounts, $17,254 credit Bad Debt Expense, $17,254

debit Bad Debt Expense, $18,024 credit Allowance for Doubtful Accounts, $18,024

debit Bad Debt Expense, $16,484 credit Allowance for Doubtful Accounts, $16,484