Question $7$ of $10$

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Larkspur. Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $$220000$ and credit sales are $$2210000.$ Management estimates that $5\%$ of accounts receivable will be uncollectible. What adjusting entry will Larkspur Company make if the Allowance for Doubtful Accounts has a credit balance of $$2200$ before adjustment?

Bad Debt Expense

$11000$

Allowance for Doubtful Accounts

$11000$

Bad Debt Expense

$8800$

Allowance for Doubtful Accounts

$8800$

Bad Debt Expense

$8800$

Accounts Receivable

$8800$

Bad Debt Expense

$11000$

Accounts Re