An Aging-Of-Accounts-Receivable Method Indicates That Amount of Uncollectible Accounts Is

question 105

Multiple Choice

An aging-of-accounts-receivable method indicates that amount of uncollectible accounts is $7,200.The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $2,000. The amount of the adjusting entry for uncollectible accounts expense should be:

• A)$9,200.
• B)$7,200.
• C)$5,200.
• D)$2,000.

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Definitions:

Spending Variance

The difference between the actual amount of money spent and the budgeted or planned amount in a given period.

Budgeting

The process of creating a plan to spend your money, outlining proposed incomes and expenditures for a future period.

Planning Budget

A financial plan created for a future period, outlining projected revenues, expenses, and capital needs.

Refurbishing Materials

Materials used in the process of renovating or restoring products to 'like-new' condition.