Allowance for Doubtful Accounts Has a Credit Balance of $900

question 15

Multiple Choice

Allowance for doubtful accounts has a credit balance of $900 at the end of the current year (prior to adjustment) . An analysis of the aged accounts in the customers' ledger indicates uncollectible accounts of $16,000. The adjusting entry would require a debit to:

• A)bad-debt expense for $15,100.
• B)bad-debt expense for $16,900.
• C)allowance for doubtful accounts for $15,100.
• D)allowance for doubtful accounts for $16,900.

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Definitions:

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