Computing the allowance for doubtful accounts


An aging of a company's accounts receivable indicates that $4,500 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a debit to Bad Debt Expense for $3,300.

  • credit to Allowance for Doubtful Accounts for $4,500.
  • debit to Bad Debt Expense for $4,500.
  • debit to Allowance for Doubtful Accounts for $3,300.

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Accounting Basics: Computing the allowance for doubtful accounts
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