Allowance for Doubtful Accounts Has a Debit Balance of $1,100

question 36

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment) , and an analysis of customers' accounts indicates uncollectible receivables of $12,900. Which of the following entries records the proper adjustment for bad debt expense?

• A) debit Bad Debt Expense, $14,000; credit Allowance for Doubtful Accounts, $14,000
• B) debit Allowance for Doubtful Accounts, $14,000; credit Bad Debt Expense, $14,000
• C) debit Allowance for Doubtful Accounts, $11,800; credit Bad Debt Expense, $11,800
• D) debit Bad Debt Expense, $11,800; credit Allowance for Doubtful Accounts, $11,800

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Definitions:

Personal Failure

Experiences of not meeting personal or professional expectations or goals, often viewed as learning opportunities.

Professional Failure

A situation where an individual or organization fails to meet professional standards or objectives in their field of work.

Attribute of Grit

A quality of perseverance and passion for long-term goals, demonstrating resilience and determination.

Forced Sale

A situation where goods are sold under the pressure of external circumstances, often at a lower price than the market value.