Using the Allowance Method, the Uncollectible Accounts for the Year

question 174

Multiple Choice

Using the allowance method, the uncollectible accounts for the year are estimated to be $50,000. If the balance for the Allowance for Doubtful Accounts is a $9,000 credit before adjustment, what is the balance after adjustment?

• A)$9,000
• B)$41,000
• C)$50,000
• D)$59,000

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Definitions:

Stromatolites

Layered bio-chemical structures formed in shallow water by the trapping, binding, and cementation of sedimentary grains by microorganisms, mainly cyanobacteria.

Mineralized Layers

Layers or deposits of organic or inorganic material that have been transformed into a solid, mineral-like substance over time.

Bacteria

Microscopic, single-celled organisms found everywhere on Earth, playing critical roles in both the environment and human health.

Lineages of Prokaryotes

The ancestral lines of descent among prokaryotic organisms, which include bacteria and archaea.