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Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $394,000 and credit sales are $1,000,000. An aging of accounts
Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $394,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 6% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $1,000 before adjustment? Oa. Bad Debt Expense $23,640 Allowance for Doubtful Accounts $23,640 Ob. Bad Debt Expense $22,140 Allowance for Doubtful Accounts $22,140 Oc. Bad Debt Expense $22,640 Allowance for Doubtful Accounts $22,640 > Od. Bad Debt Expense $21,640 Allowance for Doubtful Accounts $21,640
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