Answer:
The journal entry to record bad debt expense should be:
December 31, 2019, bad debt expense
Dr Bad debt expense 9,000
Cr Allowance for doubtful accounts 9,000
Net account receivables = $350,000 - $9,000 = $341,000
The allowance for doubtful accounts is a contra asset account that decreases the balance of accounts receivable (balance sheet). Bad debt expense is included in the income expenses and decreases total sales.
