During the year, Bears Inc. recorded credit sales of $660,000. Before adjustments at year-end, Bears has accounts receivable of $390,000, of which $57,000 is past due, and the allowance account had a credit balance of $2,900. Using the aging of receivables method, what would be the adjustment assuming Bears expects it will not collect 6% of the amount not yet past due and 30% of the amount past due?

A.	Bad Debt Expense	37,080
	Allowance for Uncollectible Accounts		37,080
B.	Bad Debt Expense	39,980
	Allowance for Uncollectible Accounts		39,980
C.	Bad Debt Expense	34,180
	Allowance for Uncollectible Accounts		34,180
D.	Allowance for Uncollectible Accounts	34,180
	Bad Debt Expense		34,180

Multiple Choice

• Option D

• Option C

• Option B

• Option A