At December 31,201X,Brooke's Horse Stable Unadjusted Allowance for Doubtful Accounts

question 82

Multiple Choice

At December 31,201X,Brooke's Horse Stable unadjusted Allowance for Doubtful Accounts showed a credit balance of $432.An aging of the Accounts Receivable indicates probable uncollectible accounts of $1,000.The year-end adjusting entry for Bad Debts Expense:

• A)includes a credit to the Allowance account for $568.
• B)includes a debit to the Allowance account for $42.
• C)includes a debit to the Allowance account for $822.
• D)includes a credit to the Allowance account for $1,432.

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