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The January 1, 2020 balance in AFDA was $100,000. During the year the only transaction impacting the AFDA was a recovery of $2,000 that had

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The January 1, 2020 balance in AFDA was $100,000. During the year the only transaction impacting the AFDA was a recovery of $2,000 that had been written off in 2019. A/R as of December 31, 2020 is $2,000,000. Management estimates that 6% of its year-end gross A/R is uncollectible. What is the year-end adjustment required? a) Dr. Bad debt expense: $18,000; Cr. AFDA: $18,000 b) Dr. Bad debt expense: $20,000; Cr: AFDA: $20,000 c) Dr. Bad debt expense: $22,000; Cr: AFDA: $22,000 d) Dr. Bad debt expense: $20,000; Cr: A/R: $20,000

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