As of December 31,Frappa Company Has a Balance of $5,000

question 129

Multiple Choice

As of December 31,Frappa Company has a balance of $5,000 in accounts receivable.Of this amount $500 is past due and the remainder is not yet due.Frappa has a credit balance of $45 in the allowance for doubtful accounts.Frappa Company estimates its bad debt losses using the aging of receivables method,with estimated bad debt loss rates equal to 1% of accounts not yet due and 10% of past due accounts.How would the required adjusting journal entry be recorded in the Allowance for Doubtful Accounts?

• A)$95 (credit).
• B)$55 (credit).
• C)$50 (credit).
• D)$45 (debit).

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Definitions:

Integrated Involvement

A holistic approach that encompasses the full participation and engagement of individuals in both work and non-work activities, aiming for balanced life roles.

Task Functions

Activities or roles performed by group members that contribute directly to the achievement of its objectives.

Maintenance Functions

Tasks or activities carried out to preserve or enhance the stability and effectiveness of groups or systems, ensuring their continued operation and longevity.

Work Team

A group of individuals working together towards a common goal, often with complementary skills and a strong sense of shared purpose.