Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment), and an analysis of receivables
estimates the amount of uncollectible accounts to be $16,000. Based on this estimate, which of the following adjusting entries should be made?
a. debit Bad Debt Expense for $15,200; credit Allowance for Doubtful Accounts for $15,200
b. debit Allowance for Doubtful Accounts for $800; credit Bad Debt Expense for $800
Oc. debit Bad Debt Expense for $16,800; credit Allowance for Doubtful Accounts for $16,800
O d. debit Bad Debt Expense for $800; credit Allowance for Doubtful Accounts for $800