An Aging- Of- Accounts- Receivable Indicates That the Amount of Uncollectible

question 64

Multiple Choice

An aging- of- accounts- receivable indicates that the amount of uncollectible accounts is $7,200. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $2,000. The amount of the adjusting entry should be:

• A)$2,000.
• B)$7,200.
• C)$9,200.
• D)$5,200.

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Definitions:

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An economic agreement granting the possessor the option to offload a defined quantity of an underlying asset at a fixed price before a certain deadline, without any compulsion.

Call Option

A financial contract granting the buyer the right, but not the obligation, to purchase a stock, bond, commodity, or other assets at a specified price within a specific time period.

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Equity shares of General Motors Company, traded on stock exchanges.

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Futures contracts that are set to expire in the month of December, often traded for commodities or financial instruments.