An aging of a company’s accounts receivable indicates the estimate of uncollectible receivables totals $7,900. if allowance for doubtful accounts has a $700 credit balance, the adjustment to record the bad debt expense for the period will require aa. debit to bad debt expense for $8,600.b. debit to bad debt expense for $7,900.c. debit to bad debt expense for $7,200.d. credit to allowance for doubtful accounts for $700

C. debit to Bad Debt Expense for $7,200.

Explanation:

The company needs to reflects the total amount in the Allowance for Doubtful Accounts as credit balance, if the balance today it’s $700, you need a new entry to adjust the balance with the Bad Debt Expense account.

The entry must be a credit in Bad Debt Expense for $7,200 and the correspondent debit in the Allowance for Doubtful Accounts as credit.

answer; ///blank(1); dealers; blank(2); brokers;