Allowance for Doubtful Accounts Has an Unadjusted Balance of $1,100

question 80

Multiple Choice

Allowance for Doubtful Accounts has an unadjusted balance of $1,100 at the end of the year, and an analysis of customers' accounts indicates doubtful accounts of $12,900.Which of the following records the proper provision for doubtful accounts?

• A) Increase Uncollectible Accounts Expense, $14,000; increase Allowance for Doubtful Accounts, $14,000
• B) Decrease Allowance for Doubtful Accounts, $14,000; decrease Uncollectible Accounts Expense, $14,000
• C) Decrease Allowance for Doubtful Accounts, $11,800; decrease Uncollectible Accounts Expense, $11,800
• D) Increase Uncollectible Accounts Expense, $11,800; increase Allowance for Doubtful Accounts, $11,800

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Definitions:

Cost Reconciliation Report

A financial statement that reconciles the total costs incurred with the costs accounted for, to ensure accuracy in financial reporting.

Weighted-Average Method

A cost accounting method that calculates the cost per equivalent unit of goods during a period by taking into account both the cost and quantity of the units produced.

Canned Vegetable Soup

This refers to a preserved, ready-to-eat soup product that contains various vegetables.

Weighted-Average Method

A method for valuing inventory that calculates the cost of inventory based on the average cost of all comparable items available throughout the period, adjusted by their weighted importance.