The Allowance for Bad Debts account has a debit balance of $8,000 before the adjusting entry for bad debts expense
After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of-receivables method, the company's management estimates that uncollectible accounts will be $13,000. What amount of bad debts expense will be reported on the income statement?
A) $6,000
B) $21,000
C) $5,000
D) $13,000
B .$13,000 + $8,000 = $21,000
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