After Aging the Accounts Receivable, It Is Estimated That $790

question 17

Multiple Choice

After aging the accounts receivable, it is estimated that $790 will not be collected and the allowance account has an existing debit balance of $230. The adjusting entry under the aging approach would be for the amount of

• A) $790.
• B) $230.
• C) $560.
• D) $1,020.

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Definitions:

Current Liabilities

Obligations or debts that a company needs to pay within one year.

Bond Carrying Value

The net amount at which a bond is reported on the balance sheet, calculated as the face value of the bond minus any unamortized discounts or plus any unamortized premiums.

Sold At A Discount

Refers to selling a product or service below its usual price or the issuing of bonds below their face value.

Bond Carrying Amount

The net value of a bond recorded on the issuer's balance sheet, which can differ from its face value due to amortization of any discounts or premiums and issuance costs.