Allowance for Doubtful Accounts has a debit balance of $842 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates uncollectible receivables of $16,139. Which of the following entries records the proper adjusting entry for bad debt expense?

Select the correct answer.

debit Bad Debt Expense, $15,297 credit Allowance for Doubtful Accounts, $15,297

debit Bad Debt Expense, $16,981 credit Allowance for Doubtful Accounts, $16,981

debit Allowance for Doubtful Accounts, $16,139 credit Bad Debt Expense, $16,139

debit Bad Debt Expense, $842 credit Allowance for Doubtful Accounts, $842