To Record Estimated Uncollectible Accounts Using the Allowance Method for Uncollectible

question 32

Multiple Choice

To record estimated uncollectible accounts using the allowance method for uncollectible accounts,the adjusting entry would be a debit to:

• A)Accounts Receivable and a credit to Allowance for Doubtful Accounts.
• B)Bad Debts Expense and a credit to Allowance for Doubtful Accounts.
• C)Allowance for Doubtful Accounts and a credit to Accounts Receivable.
• D)Loss on Credit Sales and a credit to Accounts Receivable.

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Definitions:

Number Format

A setting that determines how numbers are displayed, such as decimal places, currency symbols, or percentages.

Format Cells Dialog Box

A feature in spreadsheet software allowing users to change cell appearance, including formats for numbers, text, borders, and colors.

Decimal Places

The number of digits to the right of the decimal point in a number, indicating its precision.

Fill Handle

A tool in spreadsheet software used to automatically fill in cells with data based on the pattern of existing data.