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Assume the following unadjusted account balances at the end of the accounting period for Montana Hardware: Accounts Receivable. $80,000; Allowance for Doubtful Accounts, $1,600
Assume the following unadjusted account balances at the end of the accounting period for Montana Hardware: Accounts Receivable. $80,000; Allowance for Doubtful Accounts, $1,600 balance): Sales revenue. $900,000, If Montana Hardware ages the accounts and determines that $4,000 of the receivables may be uncollectible, the adjusting entry should be Select one: OA Bad Debts Expense 4,000 Allowance for Doubtful Accounts 4,000 OB Bad Debts Expense 5,600 Allowance for Doubtful Accounts 5,600 O c Bad Debts Expense 2,400 Allowance for Doubtful Accounts 2,400 OD Bad Debts Expense Accounts Receivable 4,000 4,000
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