Allowance for Doubtful Accounts Has a Debit Balance of $700

question 91

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $700 at the end of the year, before adjustments. Sales for the year amounted to $920,000, sales discounts amounted to $31,200 and sales returns and allowances amounted to $42,300.
-If the uncollectible accounts expense is estimated at 2% of net sales, the balance in the Allowance for Doubtful Accounts after the entry to record estimated losses from uncollectible accounts will be

• A)$17,630
• B)$16,230
• C)$18,400
• D)$16,930

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Definitions:

Chemical Equation

A chemical equation is a symbolic representation of a chemical reaction, displaying the reactants and products with their respective chemical formulas.

Reactant

Substance that participates in a chemical reaction. Compare with product.

Carbonic Acid

A weak acid formed when carbon dioxide is dissolved in water, playing a significant role in the carbon cycle and blood pH regulation.

Carbon

A chemical element with symbol C, atomic number 6, and is the basis of all known life on Earth, found in organic compounds.