A company estimates that $20,000 of its $500,000 of accounts receivable will be uncollectible. Its Allowance for Doubtful Accounts presently has a credit balance of $8,000. The adjusting entry will include a ___________________ to the Allowance for Doubtful Accounts.
A. debit of $12,000
B. credit of $12,000
C. debit of $28,000
D. credit of $28,000
Answer:B
A company estimates that $20,000 of its $500,000 of accounts receivable will be uncollectible. Its Allowance for Doubtful Accounts presently has a credit balance of $8,000. The adjusting entry will include a ___________________ to the Allowance for Doubtful Accounts.
A. debit of $12,000 B. credit of $12,000 C. debit of $28,000 D. credit of $28,000