Answer:
Step-by-step explanation:
The answer must be the credit balance of the allowance for doubtful accounts after the adjusting entry is made.
Let's calculate the amount of bad debt expense:
Estimated uncollectible accounts = 1% * $14 million = $140,000
Unadjusted balance of allowance for doubtful accounts = $24,000
Bad debt expense = $140,000 - $24,000 = $116,000
Therefore, the ending balance in the allowance account after the adjusting entry is made will be $116,000. So the answer is (c).