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29 May, 02:54

An aging of a company's accounts receivable indicates that $8500 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $2700 credit balance, the adjustment to record bad debts for the period will require a debit to Allowance for Doubtful Accounts for $5800. debit to Bad Debt Expense for $8500. debit to Bad Debt Expense for $5800. credit to Allowance for Doubtful Accounts for $8500.

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  1. 29 May, 04:35
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    debit to Bad Debt Expense for $5800

    Explanation:

    Accounts receivable estimated as uncollectible = $8500

    Allowance for Doubtful Accounts = $2700

    Additional allowance for Doubtful debts required = $8500 - $2700

    = $5800

    The adjustment to record bad debts for the period will be

    Debit Bad debt expense $5800

    Credit Allowance for Doubtful Accounts $5800

    The right option is debit to Bad Debt Expense for $5800
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