During Year 1, The Bon March Company Department Store had total sales of $2,500,000, of which 70% were on credit. The beginning balance in Accounts Receivable (on January 1 of Year 1) was $130,000. The beginning balance in Allowance for Bad Debt (on January 1 of Year 1) was $20,000. The amount of accounts written off and uncollectible during the year was $21,000.

The following aging of Accounts Receivable is for the Bon March Company at the end of the year 20X1:

	Overall	Less than 30 days	31 to 60 days	61 to 90 days	Over 90 days
Total	$412,000	$296,000	$60,000	$26,000	$30,000

The Bon March Company developed the following bad debt information from its own past experience:

Age of Account	Percent Ultimately Uncollectible
Less than 30 days	2%
31 to 60 days	14%
61 to 90 days	32%
Over 90 days	85%

The Bon March Company uses the aging method to determine its ending Allowance for Bad Debt balance. Which ONE of the following is included in the journal entry necessary at the end of the year to record bad debt expense for the year?

Group of answer choices

A DEBIT to Allowance for Bad Debt for $48,140.

A DEBIT to Accounts Receivable for $48,140.

A CREDIT to Allowance for Bad Debt for $49,140.

A CREDIT to Accounts Receivable for $49,140.

A DEBIT to Bad Debt Expense for $48,140.

A CREDIT to Bad Debt Expense for $49,140.