Tanning Company analyzes its receivables to estimate uncollectible accounts. The accounts receivable balance is $390,000,...
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Accounting
Tanning Company analyzes its receivables to estimate uncollectible accounts. The accounts receivable balance is $390,000, and credit sales are $1,300,000. An aging of accounts receivable estimates that $19,500 of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment?
a.
Account
Debit
Credit
Bad Debt Expense
19,500
Allowance for Doubtful Accounts
19,500
b.
Account
Debit
Credit
Bad Debt Expense
17,000
Allowance for Doubtful Accounts
17,000
c.
Account
Debit
Credit
Bad Debt Expense
22,000
Allowance for Doubtful Accounts
22,000
d.
Account
Debit
Credit
Bad Debt Expense
65,000
Allowance for Doubtful Accounts
65,000
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