Allowance for Doubtful Accounts Has a Credit Balance of $1,300

question 77

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $1,300 at the end of the year (before adjustment) . The company prepares an analysis of customers' accounts to estimate the amount of uncollectible accounts of $41,900. Which of the following adjusting entries would be made to record the bad debt expense for the year?

• A) debit Allowance for Doubtful Accounts, $40,600; credit Bad Debt Expense, $40,600
• B) debit Allowance for Doubtful Accounts, $43,200; credit Bad Debt Expense, $43,200
• C) debit Bad Debt Expense, $43,200; credit Allowance for Doubtful Accounts, $43,200
• D) debit Bad Debt Expense, $40,600; credit Allowance for Doubtful Accounts, $40,600

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Definitions:

Upward Mobility

The ability or opportunity for individuals or groups to improve their social or economic status.

Most Stratified

Describes societies, systems, or social structures characterized by significant levels of inequality and division into different social strata or classes.

Industrialized Nations

Countries characterized by a high level of industrial development, with a significant portion of the economy based on manufacturing and services.

Concerns Of The Wealthy

Issues and priorities predominantly affecting individuals or groups with significant economic resources.