The Allowance for Bad Debts Account Has a Debit Balance

question 154

Multiple Choice

The Allowance for Bad Debts account has a debit balance of $9,000 before the adjusting entry for bad debts expense.After analyzing the accounts in the accounts receivable subsidiary ledger,the company's management estimates that uncollectible accounts will be $10,000.What will be the amount of the adjustment in the Allowance for Bad Debts account?

• A)$18,250
• B)$10,000
• C)$17,900
• D)$19,000

---

Definitions:

Systematic Data Collection

A structured and organized method of gathering and analyzing data to ensure consistency, reliability, and validity of research findings.

Report Bias

The tendency to have inaccuracies in the reporting of data or results, often due to subjective judgment, leading to misrepresented findings.

Anecdotal Evidence

Evidence based on personal accounts or stories rather than hard data or research, often considered less reliable.

Conclusions

The judgments or decisions reached after considering all the relevant facts and evidence.