Part A

The following information is from the 2015 records of Armand Camera Shop:

Accounts Receivable, December 31, 2015	$40,000 (debit)
Allowance for Doubtful Accounts, December 31, 2015 prior to adjustment	1,500 (debit)
Net credit sales for 2015	175,000
Accounts written off as uncollectible during 2015	15,000
Cash sales during 2015	27,000

Bad debts expense is estimated by the aging-of-receivables method. Management estimates that $5,000 of accounts receivable will be uncollectible. Calculate the Allowance for Doubtful Accounts after the adjustment for bad debt expense at December 31, 2015.

	A.5250
	B.7000

	C. 5000
	D. 6500

Part B

The Allowance for Doubtful Accounts has a balance of $9,000. Management estimated that the uncollectible account is $5,000. Prepare the adjusting entry for bad debt expense.