Assuming that the Company uses the Balance Sheet Approach to estimate bad debt expense. Based on aging of accounts receivable management estimates that the desired balance in the allowance for uncollectible accounts should be $18,000. The balance in the allowance for uncollectible accounts before the adjusting entry is made is $1,000 CREDIT balance. The entry to record bad debt expense would be:

Select one:

a. Dr. Allowance for Uncollectible Accounts 17,000 and Cr. Accounts Receivable 17,000

b. Bad Debt Expense 17,000 and Cr. Allowance for Uncollectible Accounts 17,000

c. Dr. Bad Debt Expense 18,000 and Cr. Allowance for Uncollectible Accounts 18,000

d. Dr. Allowance for Uncollectible Accounts 18,000 and Cr. Accounts Receivable 18,000