Empire Has a Credit Balance of $450 in Its Allowance

question 36

Multiple Choice

Empire has a credit balance of $450 in its Allowance for Doubtful Accounts.The balance in the Accounts Receivable account is $92,500,with $2,015 estimated to be uncollectible after aging the accounts.Under the balance sheet approach,the debit to Bad Debt Expense will be:

• A)$450.
• B)$2,465.
• C)$2,015.
• D)$1,565.

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Definitions:

Cars

Motor vehicles with four wheels designed primarily for passenger transportation on roads.

Opportunity Cost

The price paid for not selecting the alternative that is second-best when a choice is made.

Car

A vehicle on wheels intended for moving people, typically driven by either an internal combustion engine or an electric motor.

Truck

A large, heavy motor vehicle used for transporting goods, materials, or large numbers of people.