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Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is exist390,000 and credit sales are exist1, 300,000. An ageing of
Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is exist390,000 and credit sales are exist1, 300,000. An ageing of accounts receivable shows that approximately 5% of the outstanding receivables will uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of exist2, 500 before adjustment? a. Bad Debt Expense 65,000 Allowance for Doubtful Accounts 65,000 b. Bad Debt Expense 19, 500 Allowance for Doubtful Accounts 19, 500 c. Bad Debt Expense 17,000 Allowance for Doubtful Accounts 17,000 d. Bad Debt Expense 22,000 Allowance for Doubtful Accounts 22,000
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