Accounts Receivable Has a Balance of $16,000 and the Allowance

question 52

Multiple Choice

Accounts receivable has a balance of $16,000 and the Allowance for uncollectible accounts has a credit balance of $1,700.What is Net accounts receivable before and after a $60 account receivable is written off?

• A) $14,300 before and $14,240 after
• B) $14,300 before and $14,300 after
• C) $16,000 before and $15,940 after
• D) $16,000 before and $16,000 after

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Definitions:

Correcting Entry

An accounting entry made to correct errors found in the financial statements after they have been prepared.

Incorrect Entry

An error or mistake made in recording transactions in the accounting records.

Correcting Entry

A journal entry made to rectify an error in the accounting records, ensuring the accuracy of financial statements.

Equipment

Tangible assets used in operations, not intended for sale, that have a useful life of more than one year.