Question
The balance on December 31, 2015 are as follows: Accounts Receivable - $15,000 Allowance for Doubtful Accounts - $2,400 Bad Debt Expense - $1,800 If
The balance on December 31, 2015 are as follows: Accounts Receivable - $15,000 Allowance for Doubtful Accounts - $2,400 Bad Debt Expense - $1,800 If Credit sales during 2016 are 100,000 and management deems a 4% allowance appropriate, what is the adjusting journal entry needed on December 31, 2016?
choices
1 Debit Bad Debt Expense $1,600, Credit Allowance for Doubtful Accounts $1,600
2 Debit Allowance for Doubtful Accounts $1,600, Credit Bad Debt Expense $1,600
3 Debit Bad Debt Expense $2,200, Credit Allowance for Doubtful Accounts $2,200
4 Debit Accounts Receivable $1,600, Credit Allowance for Doubtful Accounts $1,600
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