Allowance for Doubtful Accounts Has a Debit Balance of $980

question 61

Multiple Choice

Allowance for doubtful accounts has a debit balance of $980 at the end of the current year (prior to adjustment) . Net credit sales for the current period amount to $950,000 and 2.5% is estimated to be uncollectible. The adjusting entry would require a debit to:

• A)bad-debt expense for $23,750.
• B)allowance for doubtful accounts for $24,730.
• C)allowance for doubtful accounts for $22,770.
• D)accounts receivable accounts for $23,750.

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Definitions:

Thrombin

An enzyme in blood plasma that causes the clotting of blood by converting fibrinogen to fibrin.

Hematocrit

Hematocrit is a blood test measure that indicates the proportion of red blood cells to the total blood volume, expressed as a percentage.

Male

Referring to the sex that produces small, mobile gametes, typically associated with physiological and genetic characteristics distinct from the female.

Average

A statistical measure that represents the central tendency or typical value of a set of numbers, calculated by dividing the sum of the values by their number.