Assume the following unadjusted account balances at the end of the accounting period for Chocolate Brownie Palace: Accounts Receivable, $90,000; Allowance for Doubtful Accounts, $1,000 (credit balance); and Sales revenue $600,000.
If Chocolate Brownie Palace ages the accounts and determines that $5,000 of receivables may be uncollectible, the adjusting entry should be:
Select one:
A.
Bad Debts Expense
5,000
Accounts Receivable
5,000
B.
Bad Debts Expense
4,000
Allowance for Doubtful Accounts
4,000
C.
Bad Debts Expense
5,00
Allowance for Doubtful Accounts
5,000
D.
Bad Debts Expense
3,000
Allowance for Doubtful Accounts
3,000
B.
Bad Debts Expense
4,000
Allowance for Doubtful Accounts
4,000
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