At the beginning of the current period, Newman Corporation had balances in Accounts Receivable of $201,100 and in Allowance for Doubtful Accounts of $9,900 (credit). During the period, Newman had credit sales of $805,800 and collections on account of $769,300.

Newman uses a perpetual inventory system and determined that the cost of goods sold during the period was $669,500. Newman wrote off as uncollectible accounts receivable of $7,500. However, a $2,800 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,400 at the end of the period.

The adjusting entry to record bad debts expense for the period is:

Question 16 options:

Bad Debt Expense			20,200
	Allowance for Doubtful Accounts			20,200

Bad Debt Expense			15,500
	Accounts Receivable			15,500

Bad Debt Expense			8,000
	Allowance for Doubtful Accounts			8,000

Bad Debt Expense			25,400
	Accounts Receivable			25,400

None of the above