At January 1, Everbright Sales Has the Following Balances

question 32

Multiple Choice

At January 1, Everbright Sales has the following balances: During the year, Everbright has $150,000 of credit sales, collections of $140,000, and write-offs of $3,000. Everbright records Uncollectible account expense at the end of the year using the aging method. At the end of the year, the aging analysis produces a figure of $1,900, being the estimate of uncollectible accounts at end of year.
After the year-end entry to adjust the Uncollectible accounts expense is made, what is the final balance in the Allowance for uncollectible accounts?

• A)Debit of $1,800
• B)Credit of $4,200
• C)Credit of $1,900
• D)Debit of $3,000

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Definitions:

Simplify

To make an expression less complex by combining like terms and executing arithmetic operations where possible.

Fraction

A numerical quantity that represents a part of a whole, typically in the form of a numerator divided by a denominator.

Exponent

A number that indicates how many times a base is multiplied by itself.

Fraction

A mathematical expression representing the division of one quantity by another, noted by a numerator divided by a denominator.