The Allowance for Bad Debts Has a Credit Balance of $9,000

question 32

Multiple Choice

The Allowance for Bad Debts has a credit balance of $9,000 before the adjusting entry for bad debt expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging method, the company's management estimates that uncollectible accounts will be $15,000. What will be the amount of bad debts expense reported on the income statement?

• A)$24,000
• B)$6,000
• C)$15,000
• D)$9,000

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Definitions:

Volume

The amount of space that an object or substance occupies.

Endoplasmic Reticulum

A membrane-bound organelle in eukaryotic cells involved in the synthesis, folding, modification, and transport of proteins and lipids.

Ribosomes

Cellular organelles that serve as the site of protein synthesis, translating mRNA into polypeptide chains.

Intracellular Digestion

The breakdown of nutrients within the cytoplasm of a cell as a part of the metabolic process.