Using the Percentage of Receivables Method for Recording Bad Debts

question 44

Multiple Choice

Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are ¥250,000. If the balance of the Allowance for Doubtful Accounts is ¥50,000 debit before adjustment, what is the balance after adjustment?

• A) ¥250,000
• B) ¥300,000
• C) ¥200,000
• D) ¥50,000

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