Answer:the adjustment to record bad debts for the period will require a debit of $3,800 on Bad Debts Expense account and a credit of $3,800 on Accounts Receivable account.
Explanation:
Account receivables = $4,000 uncollectible
Allowance for Doubtful Accounts =$1,200 credit balance
Adjustment to record bad debts =Account receivables-$1,200 credit balance
= $4,000 - $1,200
=$3,800
The adjustment journal entry to record the bad debts for the period will require
Accounts Debit Credit
Bad debt expense $3,800
Accounts receivables $3,800
