Chen Company's account balances at December 31 for Accounts Receivable and Allowance for Doubtful Accounts were HK$2,100,000 and HK$20,000 (Cr.), respectively. An aging of accounts receivable indicated that HK$170,000 are expected to become uncollectible. The amount of the adjusting entry for bad debts at December 31 is? a. HK$150,000 b. HK$170,000 c. HK$210,000 d. HK$190,000 Ans: A, LO: 2, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA FC: Measurement, IMA: Reporting Solution: HK$170,000 HK$20,000 = HK$150,000 (Est. tot. uncollect. amt. Existing bal. in allow. for dbtfl. accts. = Bad debt exp.)