The Allowance for Bad Debts Account Has a Credit Balance

question 61

Multiple Choice

The Allowance for Bad Debts account 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 balance of the Allowance for Bad Debts reported on the balance sheet?

• A)$15,000
• B)$14,900
• C)$15,900
• D)$14,100

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Definitions:

9 + 2 Arrangement

A common structure observed in eukaryotic flagella and cilia, consisting of nine double microtubule pairs surrounding two central microtubules.

Centrioles

Cylindrical structures in animal cells that play a crucial role in organizing microtubules during cell division.

Cytoskeleton

A complex network of interlinking filaments and tubules that extend throughout the cytoplasm in cells, providing structure and facilitating movement.

Structural Components

The physical parts or elements that make up an object, system, or organism, providing it with stability and form.