Using the Percentage-Of-Receivables Method for Recording Bad Debt Expense, Estimated

question 219

Multiple Choice

Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $45,000. If the balance of the Allowance for Doubtful Accounts is $6,000 credit before adjustment, what is the amount of bad debt expense for that period?

• A)$45,000
• B)$39,000
• C)$51,000
• D)$6,000

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Definitions:

Electronic Funds Transfers

The electronic exchange or transfer of money from one account to another, either within a single financial institution or across multiple institutions.

Bank Reconciliation

The process of comparing a company's bank account balance with its financial records to identify discrepancies and ensure accuracy.

Sign Cheques

The action of signing a check as a means of authorizing a bank to transfer funds from the signer's account.

Reconciling Items

Entries that adjust discrepancies between two financial records or accounts, ensuring consistency and accuracy.