At the End of the Period,the Manager of Olive Co

question 40

Multiple Choice

At the end of the period,the manager of Olive Co.estimated that $80,000 of its accounts receivable were uncollectible.If the Allowance for Doubtful Accounts has a credit balance of $22,400,which of the following sets forth the adjusting entry to record bad debts for the period? Assume the allowance method is used.

• A)Debit Bad Debt Expense and credit Accounts Receivable for $80,000.
• B)Debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $57,600.
• C)Debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $80,000.
• D)Debit Bad Debt Expense and credit Accounts Receivable for $57,600.

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Definitions:

Pairs

Two items, individuals, or elements grouped together.

Neurogenesis

The process of generating new neurons in the brain, which can occur in certain brain regions throughout life.

Stem Cells

Undifferentiated cells capable of giving rise to indefinitely more cells of the same type, and from which certain other kinds of cell arise by differentiation.

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells, primarily through electrical and chemical signals.