a-company-estimates-that-4-of-its-200000-credit-sales-will-be-uncollectible-what

Question

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?

Accepted Answer

Debit Bad Debt Expense $$8,000; Credit Allowance for Doubtful Accounts 8$$,000

Answer

Debit Allowance for Doubtful Accounts $$8,000; Credit Bad Debt Expense 8$$,000

Answer

Debit Accounts Receivable $$8,000; Credit Bad Debt Expense 8$$,000

Answer

Debit Bad Debt Expense $$200,000; Credit Allowance for Doubtful Accounts 200$$,000

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?