Allowance for Doubtful Accounts Has a Credit Balance of $800

question 185

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment) , and an analysis of accounts in the customer ledger indicates that the estimated amount of uncollectible accounts should be $16,000. Based on the estimate above, which of the following adjusting entries should be made?

• A) debit Bad Debt Expense, $800; credit Allowance for Doubtful Accounts, $800
• B) debit Bad Debt Expense, $15,200; credit Allowance for Doubtful Accounts, $15,200
• C) debit Allowance for Doubtful Accounts, $800; credit Bad Debt Expense, $800
• D) debit Bad Debt Expense, $16,800; credit Allowance for Doubtful Accounts, $16,800

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Definitions:

Power Dynamics

The ways in which power is distributed and exercised within relationships, groups, or societies, affecting decisions, behaviors, and outcomes.

Relationship Of Choice

Interpersonal relationship you choose to initiate, maintain, and perhaps terminate.

Teammate

A member of the same team or group, working together towards a common goal.

Circumstantial And Choice

Factors including both situations that occur without one's control and those that are decided upon, influencing outcomes or decisions.