Question 18

accounts receivable balance is $500,000 and sales revenue for the year was $2,500,000. Management estimates that 2% of accounts receivable will be uncollectible. What adjusting entry will Leonard Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment? debit Bad Debt Expense 10,000; credit Accounts Recelvable 10,000. debit Allowance for Doubtful Accounts 6,000; Bad Debt Expense 6,000. debit Bad Debt Expense 9,000; Cash 9,000. debit Bad Debt Expense 8,000: Allowance for Doubtful Accounts 8,000