The Allowance for Doubtful Debts Account Has a Credit Balance

question 19

Multiple Choice

The Allowance for doubtful debts account has a credit balance of $8500 before the adjusting entry for bad debt expense.After analysing the accounts in the accounts receivable subsidiary ledger using the ageing method,the company's management estimates that uncollectable accounts will be $14,500.What will be the balance of the Allowance for doubtful debts reported on the balance sheet?

• A)$6000
• B)$13,050
• C)$23,000
• D)$14,500

---

Definitions:

Foreign Threats

Challenges or dangers originating from outside a country's borders that can impact national security or interests.

Embargo Trade

A governmental ban on trade with a specific country or the exchange of specific goods, often used as a political tool.

White House Staff

Employees and officials who directly assist and support the President of the United States in the daily management of executive branch duties.

Executive Council

A body composed of the executive members of a government or organization, responsible for making decisions and overseeing the administration of policies and strategies.