Question

An aging of a company's accounts receivable indicates that $15800 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1210 credit balance, the adjustment to record bad debts for the period will require a credit to Allowance for Doubtful Accounts for $15800. debit to Allowance for Doubtful Accounts for $14590. debit to Bad Debt Expense for $15800. debit to Bad Debt Expense for $14590.

Answer 1

debit to Bad Debt Expense for $14590.

Step-by-step explanation:

The computation is shown below:

= Uncollectible estimated balance - credit balance of the allowance for doubtful debts

= $15,800 - $1,210

= $14,590

The same should be debited to the bad debt expense

Hence, the last option is correct