Allowance for Doubtful Accounts Has a Credit Balance of $1,300

question 71

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $1,300 at the end of the year (before adjustment) . The company prepares an analysis of customers' accounts to estimate the amount of uncollectible accounts of $41,900. Which of the following adjusting entries would be made to record the Bad Debt Expense for the year?

• A) debit Allowance for Doubtful Accounts, $40,600; credit Bad Debt Expense, $40,600
• B) debit Allowance for Doubtful Accounts $43,200; credit Bad Debt Expense, $43,200
• C) debit Bad Debt Expense, $43,200; credit Allowance for Doubtful Accounts, $43,200
• D) debit Bad Debt Expense, $40,600; credit Allowance for Doubtful Accounts, $40,600

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Definitions:

Manual Stimulation

Physical stimulation of body parts, often referring to sexual arousal processes performed with the hands.

Smooth Muscle

Involuntary, non-striated muscle found in walls of internal organs such as the stomach, bladder, and blood vessels.

Cerebellum

Separate portion of the brain attached to the brainstem at the pons; important in maintaining muscle tone, balance, and coordination of movement.

Impotence

Inability to accomplish the male sexual act; caused by psychic or physical factors; also called erectile dysfunction (ED).