Question

A company has $90,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. experience suggests that 4% of outstanding receivables are uncollectible. the current balance (before adjustments) in the allowance for doubtful accounts is an $800 debit balance. what adjusting journal entry should the company make at the end of the current year to record its estimated bad debts expense?

a. debit bad debt expense $2,800; credit allowance for doubtful accounts $2,800

b. debit bad debt expense $4,400; credit allowance for doubtful accounts $4,400

c. debit allowance for doubtful accounts $3,600; credit accounts receivable $3,600

d. debit bad debt expense $3,600; credit accounts receivable $3,600

Answer 1

300milion..........

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