43.0k views
1 vote
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.

User Jheanell
by
8.1k points

1 Answer

4 votes

Answer:

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

User Liseth
by
7.7k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.