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:

Nonpolar

Describing molecules that do not have distinct positive and negative poles, resulting in a uniform distribution of charge.

Carbohydrate

A class of organic compounds consisting of carbon, hydrogen, and oxygen, primarily used by the body for energy and structural purposes.

Lipid

Lipids are a broad group of naturally occurring molecules that include fats, oils, waxes, and certain vitamins, characterized by their insolubility in water but solubility in organic solvents.

Nucleic Acid

Macromolecules, such as DNA or RNA, composed of nucleotides that carry genetic information or are involved in controlling cellular processes.