Y Company Has the Following Accounting Balances at the End

question 148

Multiple Choice

Y Company has the following accounting balances at the end of the year before adjustments: The company estimates that 20% of accounts receivable will be uncollectible.After the correct adjusting entry has been made,which of the following is correct about Bad debts expense for the year and Allowance for uncollectible accounts at the end of the year?

• A)Bad debts expense will be $4,000 on the income statement and Allowance for uncollectible accounts will be $(5,000)on the balance sheet.
• B)Bad debts expense will be $4,000 on the income statement and Allowance for uncollectible accounts will be $(4,000)on the balance sheet.
• C)Bad debts expense will be $5,000 on the balance sheet and Allowance for uncollectible accounts will be $(5,000)on the income statement.
• D)Bad debts expense will be $5,000 on the income statement and Allowance for uncollectible accounts will be $(5,000)on the balance sheet.

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Definitions:

Management

The process of planning, organizing, leading, and controlling resources to achieve organizational goals efficiently and effectively.

Human

Referring to a member of the species Homo sapiens, characterized by the capacity for language, rationality, and complex social structures.

Market

A market is a place or system where buyers and sellers interact to exchange goods, services, or information, often determined by supply and demand.

Transactive Mode

A method of interaction where knowledge and information are exchanged among individuals through a process of communication and transaction.