Using its aging of accounts receivable, Age Old, Incorporated estimates that $$90,000$ of its $$4,000,000$ of accounts receivable will be uncollectible. Prior to making its adjusting entry, the unadjusted Allowance for Doubtful Accounts has a debit balance of $$1,000.$ After the adjustment, the:

Multiple Choice

Allowance for Doubtful Accounts will have a $$90,000$ credit balance.

Allowance for Doubtful Accounts will have an $$89,000$ credit balance.

Allowance for Doubtful Accounts will have a $$91,000$ credit balance.

Bad Debt Expense will equal $$90,000.$