Using the Percentage-Of-Receivables Method for Recording Bad Debt Expense, Estimated

question 119

Multiple Choice

Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $45,000.If the balance of the Allowance for Doubtful Accounts is a $6,000 debit before adjustment, what is the balance after adjustment?

• A)$45,000
• B)$51,000
• C)$39,000
• D)$6,000

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Definitions:

Synthesizes

The process of combining simpler substances chemically to form more complex substances.

Messenger RNA

A type of RNA that conveys genetic information from DNA to the ribosome, where it specifies the amino acid sequence of the protein products of gene expression.

Transcription

The process by which the information in a strand of DNA is copied into a new molecule of messenger RNA (mRNA).

Kinetochore

Structural portion of the chromosome to which microtubules attach.