-Use the Information Above to Answer the Following Question

question 6

Multiple Choice

-Use the information above to answer the following question.What is the total of the credit balance accounts?

• A) $111,040.
• B) $104,090.
• C) $113,540.
• D) $108,590.

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Definitions:

Balance Sheet Approach

A method of estimating allowances based on the balances of particular accounts, focusing on the assets and liabilities reported on the balance sheet.

Bad Debts Expense

A provision in accounting for accounts receivable that are not expected to be collected, recognizing them as an expense.

Allowance for Doubtful Accounts

A contra-asset account that represents the amount of accounts receivable a company does not expect to collect.

Uncollectible Accounts

Accounts receivable that are deemed to be uncollectible, leading to them being written off as a bad debt expense.