Delectable,Inc

question 163

Multiple Choice

Delectable,Inc.'s unadjusted trial balance includes Accounts Receivable of $10,000,a credit balance in its Allowance for Doubtful Accounts of $50,and Sales Revenue of $100,000.Based on an aging of its receivable,management estimates that $1,000 of receivables will be uncollectible.Delectable's financial statements will show:

• A) Bad Debt Expense of $1,000
• B) Allowance for Doubtful Accounts of $(1,050)
• C) Allowance for Doubtful Accounts of $(950)
• D) Bad Debt Expense of $950

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