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An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $4,731. If Allowance for Doubtful Accounts has a $810 credit balance, the adjustment to record the bad debt expense for the period will require a:________.
a. debit to Allowance for Doubtful Accounts for $3,921.
b. debit to Bad Debt Expense for $3,921.
c. credit to Allowance for Doubtful for $4,731.
d. debit to Allowance for Doubtful Accounts for $4,731

Respuesta :

ayokenny2001

Answer:

b. debit to bad debt expense for $3,921

Explanation:

Bad debt are debts owed to a business and which cannot be collected. Theses debts occurs during the course of business transaction and are caused by fraud, a company avoiding its obligation to pay or trade disagreements.

With regards to the above, the adjustment to bad debts expense will be the difference between accounts receivable and doubtful accounts.

Bad debts expense = $4,731 - $810 = $3,921

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