If the Allowance for Uncollectible Accounts Has a Credit Balance

question 90

True/False

If the Allowance for Uncollectible Accounts has a credit balance of $500 and the estimated sales for next year are $800,000, and the historical bad debt percentage has been 2%, the adjusting journal entry amount should be $15,500.

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Definitions:

Order

(1) An order to appear and bring specified documents. (2) A binding decision issued by an ALJ after a hearing.

Shelter Principle

The principle which holds that when an item is transferred, the transferee acquires all the rights the transferor had to the item.

Transferee

A person or organization that acquires property, rights, or interests from someone else via a lawful transfer method.

Transferor

The party that transfers rights, property, or interests to another, known as the transferee.