Question
Before making its end-of-period adjusting journal entry to record the bad debt expense estimate, ABC Corporation has a CREDIT balance in its Allowance for Doubtful
Before making its end-of-period adjusting journal entry to record the bad debt expense estimate, ABC Corporation has a CREDIT balance in its Allowance for Doubtful Accounts of $30,000. An aging analysis suggests that the estimated amount of uncollectible accounts receivable at the end of the period is $140,000. ABC should make the following adjusting entry:
Dr. Bad Debt Expense 170,000 and Cr. Allowance for Doubtful Accounts 170,000
Dr. Bad Debt Expense 110,000 and Cr. Allowance for Doubtful Accounts 110,000
Dr. Bad Debt Expense 140,000 and Cr. Allowance for Doubtful Accounts 140,000
Dr. Bad Debt Expense 30,000 and Cr. Allowance for Doubtful Accounts 30,000
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