Allowance for Doubtful Accounts Has a Credit Balance of $800

question 160

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment) , and an analysis of accounts in the customer ledger indicates the estimated amount of uncollectible accounts should be $16,000. Based on this estimate, which of the following adjusting entries should be made?

• A) debit Bad Debt Expense, $800; credit Allowance for Doubtful Accounts, $800
• B) debit Bad Debt Expense, $15,200; credit Allowance for Doubtful Accounts, $15,200
• C) debit Allowance for Doubtful Accounts, $800; credit Bad Debt Expense, $800
• D) debit Bad Debt Expense, $16,800; credit Allowance for Doubtful Accounts, $16,800

---

Definitions:

Acculturation Approach

A method that addresses how individuals adapt to new cultural contexts, including assimilation, integration, separation, and marginalization strategies.

Deficit Beliefs

The perspective that individuals or groups are lacking in certain areas compared to a perceived norm, leading to disadvantages.

Cultural Insensitivities

Refers to actions or behaviors that show a lack of awareness or respect for other people's cultures and traditions, often leading to misunderstanding and offense.

Cultural Discontinuities

Gaps or inconsistencies that arise when different cultural backgrounds lead to misunderstandings or conflicts in values, expectations, or behaviors.