Scott Co Reported an Allowance for Doubtful Accounts of $28,000 (Credit)

question 81

Multiple Choice

Scott Co. reported an allowance for doubtful accounts of $28,000 (credit) at December 31, 2011, before performing an aging of accounts receivable. As a result of the aging, Scott determined that an estimated $27,000 of the December 31, 2011, accounts receivable would prove uncollectible. The adjusting entry required at December 31, 2011, would be

• A) Doubtful Accounts Expense ........... 27,000 Allowance for Doubtful Accounts ... 27,000
• B) Doubtful Accounts Expense ........... 27,000 Accounts Receivable ............... 27,000
• C) Allowance for Doubtful Accounts ..... 1,000 Doubtful Accounts Expense ......... 1,000
• D) Doubtful Accounts Expense ........... 1,000 Allowance for Doubtful Accounts ... 1,000

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Definitions:

Noncustodial Father

A father who does not have legal custody of his child, meaning the child resides primarily with the other parent.

Custodial Parent

The parent granted primary physical and/or legal guardianship of a child by a court order.

Stepfather

Stepfather is a man who is married to one's parent after the divorce or separation of one's biological parents, or the death of one's biological father, and who may serve as a parental figure.

Stepparent

An individual who is married to a person who has one or more children from a previous relationship, but is not their biological parent.