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You know that an estimated $6,000 is uncollectible because a company's accounts receivable is aging. If his bad debt reserve debit balance is $2,000, an

  1. You know that an estimated $6,000 is uncollectible because a company's accounts receivable is aging. If his bad debt reserve debit balance is $2,000, an adjustment is required to recognize the bad debt for the period.
    1. Debit to Bad Debt Expense for $8,000.
    2. Debit to Allowance for Doubtful Accounts for $8,000.
    3. Debit to Bad Debt Expense for $4,000.
    4. Credit to Allowance for Doubtful Accounts for $4,000.

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