Using the Allowance Method, the Uncollectible Accounts for the Year

question 206

Multiple Choice

Using the allowance method, the uncollectible accounts for the year are estimated to be $40,000. If the balance for the Allowance for Doubtful Accounts is a $9,000 credit before adjustment, what is the balance after adjustment?

• A) $9,000
• B) $31,000
• C) $40,000
• D) $49,000

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Definitions:

Questionable Behaviour

Actions or patterns of actions that raise doubts about morality, legality, or appropriateness, possibly leading to ethical or legal scrutiny.

Discovered

The act of finding something for the first time or uncovering information previously unknown.

Ethical Behaviour

Acting in ways consistent with societal norms and values concerning moral principles, including honesty, fairness, and integrity.

Supervisors

Individuals within an organization responsible for overseeing and managing the work of other employees or teams.