The Journal Entry to Record the Estimate of Uncollectible Accounts

question 77

Multiple Choice

The journal entry to record the estimate of uncollectible accounts includes:

• A)debit Sales; credit Bad Debts Expense.
• B)debit Bad Debts Expense; credit Accounts Receivable.
• C)debit Allowance for Doubtful Accounts; credit Bad Debts Expense.
• D)debit Bad Debts Expense; credit Allowance for Doubtful Accounts.

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Definitions:

Service Revenue

Income earned by a company through providing services as opposed to selling physical goods.

Salaries Payable

An account that records the amount owed to employees for work performed but not yet paid.

Payroll

The total amount paid to employees for services they provided during a certain period of time.

Accrued Revenues

Revenues earned in one accounting period but not received until a later period.