Question

an aging of a company's accounts receivable indicates that $9,000 are estimated to be uncollectible. if allowance for doubtful accounts has a $3,200 credit balance, the adjustment to record bad debts for the period will require a a. debit to bad debt expense for $9,000. b. debit to allowance for doubtful accounts for $5,800. c. debit to bad debt expense for $5,800. d. credit to allowance for doubtful accounts for $9,000.

Answer 1

The adjustment to record bad debts for the period will require a debit to bad debt expense for $5,800. Therefore, the correct option is C.

Step-by-step explanation:

The adjustment to record bad debts for the period will require a debit to bad debt expense for $5,800.

To calculate the adjustment, we can start with the uncollectible amount of $9,000 and subtract the existing credit balance in the allowance for doubtful accounts, which is $3,200. This gives us $5,800, which represents the additional amount that needs to be recorded as bad debt expense.

Therefore, option C is the correct answer.