Longbine Company's Ledger at the End of the Current Year

question 252

Essay

Longbine Company's ledger at the end of the current year shows Accounts Receivable of $150,000.
Instructions
a. If Allowance for Doubtful Accounts has a credit balance of $3,000 in the trial balance and bad debts are expected to be 4% of accounts receivable, journalize the adjusting entry for the end of the period.
b. If Allowance for Doubtful Accounts has a debit balance of $3,000 in the trial balance and bad debts are expected to be 4% of accounts receivable, journalize the adjusting entry for the end of the period.

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Definitions:

Theory of Reasoned Action

A theory that predicts an individual's behavior based on their intention to perform the behavior, which is determined by attitudes towards the behavior and subjective norms.

Planned Behavior

A theory that predicts individuals' behavior based on their intentions, attitudes towards the behavior, subjective norms, and perceived behavioral control.

Theory of Planned Behavior

This theory posits that human behavior is guided by three kinds of considerations: behavioral beliefs, normative beliefs, and control beliefs.

Theory of Reasoned Action

A psychological theory that explains the relationship between attitudes and behaviors within human action, suggesting that behavioral intentions are influenced by personal attitudes and the subjective norms surrounding an action.