You Have Just Analyzed Customers' Accounts Receivable Through an "Aging $\begin{array}{ll}\text { Bad Debt Expense } & 3,100 \\\text { Allowance for Bad Debts } & 3,100\end{array}$

question 65

Multiple Choice

You have just analyzed customers' accounts receivable through an "aging" process and have determined that $3,000 of the accounts receivable are probably uncollectible. Noting that your trial balance shows an Allowance for Bad Debts with a debit balance of $100, what is the correct adjusting entry?

• A)
• \(\begin{array}{ll}
• \text { Bad Debt Expense } & 3,100 \\
• \text { Allowance for Bad Debts } & 3,100
• \end{array}\)
• B)
• \(\begin{array}{cc}
• \text { Allowance for Bad Debts } & 3,100 \\
• \text { Bad Debt Expense } & 3,100
• \end{array}\)
• C)
• \(\begin{array}{cc}
• \text { Allowance for Bad Debts } & 3,000 \\
• \text { Bad Debt Expense } & 3,000
• \end{array}\)
• D)
• \(\begin{array}{ll}
• \text { Bad Debt Expense } & 2,900 \\
• \text { Allowance for Bad Debts } & 2,900
• \end{array}\)

---

Definitions:

Market Size

The total volume of sales or potential sales of a product or service within a particular market.

Tying Arrangement

A seller’s act of conditioning the sale of a product or service on the buyer’s agreement to purchase another product or service from the seller.

Legality

Conformity with the law or legal statutes, often used to refer to the status of actions, agreements, or policies.

Competition

The rivalry among sellers in the market aiming to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix.