The Allowance for Doubtful Accounts has a $400 debit balance. An aging schedule shows that total estimated bad debts is $3,600. The adjusting entry will require a debit and credit for:

$4,000

$3,600

$3,200

some other amount

The Allowance for Doubtful Accounts has a $400 credit balance. An aging schedule shows that total estimated bad debts is $3,600. The adjusting entry will require a debit and a credit for:

$4,000

$3,600

$3,200

some other amount