The Allowance for Bad Debts account has a debit balance of $8000 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 $15,000. What amount of bad debts expense will be reported on the income statement?
A) $4000
B) $23,000
C) $7000
D) $15,000
B) $23,000
Explanation: $15,000 + $8000 = $23,000
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