Using the aging approach, management estimates that 10% of the $30,000 of Accounts Receivable will be uncollectible. The Allowance for Doubtful Accounts has a $300 unadjusted debit balance. The adjusting entry to record estimated bad debts includes a:

Multiple Choice

• debit to Bad Debt Expense of $3,000.

• credit to Allowance for Doubtful Accounts of $3,000.

• debit to Bad Debt Expense of $3,300.

• debit to Bad Debt Expense of $2,700.