The Beginning Credit Balance in the Allowance for Doubtful Accounts

question 49

Multiple Choice

The beginning credit balance in the allowance for doubtful accounts is $12,656 and the ending credit balance is $14,348.If bad debt expense was $3,879,which of the following statements is true?

• A)The allowance account was retroactively debited $2,187 for additional bad debts that became apparent in a future time period.
• B)The allowance account was debited $2,187 for write-offs of actual bad debts.
• C)The allowance account was credited $2,187 for recoveries of bad debts.
• D)The allowance account was credited $2,187 for the difference between the percent of credit sales method and the aging of accounts receivable methoD.

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