Allowance for Doubtful Accounts Has a Credit Balance of $3,600

question 76

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $3,600 immediately before the write-off of a $750 account receivable. The balance of Allowance for Doubtful Accounts immediately after the write-off is

• A)$750 debit.
• B)$2,850 credit.
• C)$4,350 credit.
• D)$2,850 debit.

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Definitions:

Matter of Law

An issue that is determined by statutes, legal precedent, or constitution, rather than by the factual situation of a case.

Appellate Court

a court that has the authority to review and make changes to the decisions of lower courts.

Affirmed

In legal context, it means that a higher court has confirmed or upheld the decision of a lower court.

Motion for New Trial

A formal request to a court asking to nullify a jury's decision and grant a new trial due to errors or unfairness in the original trial.