A company estimates that 4% of its \$200,000 credit sales will be uncollectible. What journal entry should be made to record the bad debt expense?

• A. Debit Allowance for Doubtful Accounts \$8,000; Credit Bad Debt Expense \$8,000
• B. Debit Accounts Receivable \$8,000; Credit Bad Debt Expense \$8,000
• C. Debit Bad Debt Expense \$8,000; Credit Allowance for Doubtful Accounts \$8,000
• D. Debit Bad Debt Expense \$200,000; Credit Allowance for Doubtful Accounts \$200,000

Answer: (C)