Using Its Aging of Accounts Receivable,Age Old,Inc

question 174

Multiple Choice

Using its aging of accounts receivable,Age Old,Inc.estimates that $90,000 of its $4,000,000 of accounts receivable will be uncollectible.Prior to making its adjusting entry,the unadjusted Allowance for Doubtful Accounts has a debit balance of $1,000.After the adjustment,the:

• A)Allowance for Doubtful Accounts will have a $90,000 credit balance.
• B)Allowance for Doubtful Accounts will have an $89,000 credit balance.
• C)Allowance for Doubtful Accounts will have a $91,000 credit balance.
• D)Bad Debt Expense will equal $90,000.

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Definitions:

Climate

The average weather conditions in a particular region over a long period, characterized by temperature, precipitation, and other factors.

Topography

The arrangement of the natural and artificial physical features of an area, including its elevations, valleys, and bodies of water.

Atmosphere

The layer of gases that surrounds the Earth, crucial for life as it provides oxygen, absorbs ultraviolet solar radiation, and moderates temperature.

Solar Radiation

The electromagnetic energy emitted by the sun, including visible light, ultraviolet light, and infrared energy, which is a primary source of energy for Earth's climate system.