Using the Allowance Method,which Is the Correct Adjusting Journal Entry

question 29

Multiple Choice

Using the allowance method,which is the correct adjusting journal entry to record bad debt expense?

• A)Debit Bad Debt Expense and credit Allowance for Doubtful Accounts.
• B)Debit Allowance for Bad Debt Expense and credit Bad Debt Expense.
• C)Debit Bad Debt Expense and credit Sales Revenue.
• D)Debit Bad Debt Expense and credit Accounts Receivable.

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Definitions:

Performance Feedback

Communication process in which employees receive evaluation on their job performance, often including both strengths and areas for improvement.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from the mean.

Normally Distributed

Refers to a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Mean

The arithmetic average of a set of numbers, calculated by adding all the numbers and dividing by the count of numbers.