The Allowance for Bad Debts has a credit 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 $17,000. What will be the amount of Bad Debts Expense reported on the income statement?
A) $25,000
B) $9,000
C) $17,000
D) $8,000
B .Estimate of uncollectible accounts - Credit balance of the Allowance for Bad Debts = $17,000 - $8,000 = $9,000
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