It includes credit to Allowance for Doubtful Accounts
debit to Bad Debt Expense
Adjusting entries are the modifications to the previously recorded journal entries. They specifically ensure that the values you have recorded correspond to the relevant accounting periods. Journal entries show how money flows through the business how it enters, exits, and transfers between accounts.
A bad debts expenditure item is also required to balance the accounts. To do so, debit the Bad Debts Expenditure account to boost the bad debts expense. Then, credit the Allowance for Doubtful Accounts account to reduce your ADA account.
Therefore, the answer is credit allowance for doubtful debts and debit bad debt expenses.
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