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 $18,000. The adjusting entry will include a ____________________ to Bad Debts Expense.
A. debit of $2,000
B. credit of $2,000
C. debit of $38,000
D. credit of $38,000
Answer:A
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 $18,000. The adjusting entry will include a ____________________ to Bad Debts Expense.
A. debit of $2,000 B. credit of $2,000 C. debit of $38,000 D. credit of $38,000