Allowance for Doubtful Accounts Has a Credit Balance of $1,300

question 71

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $1,300 at the end of the year (before adjustment) . The company prepares an analysis of customers' accounts to estimate the amount of uncollectible accounts of $41,900. Which of the following adjusting entries would be made to record the Bad Debt Expense for the year?

• A) debit Allowance for Doubtful Accounts, $40,600; credit Bad Debt Expense, $40,600
• B) debit Allowance for Doubtful Accounts $43,200; credit Bad Debt Expense, $43,200
• C) debit Bad Debt Expense, $43,200; credit Allowance for Doubtful Accounts, $43,200
• D) debit Bad Debt Expense, $40,600; credit Allowance for Doubtful Accounts, $40,600

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Definitions:

Objection Into Reason

A sales technique where objections raised by a prospective buyer are turned into reasons why they should actually purchase the product or service.

Boomerang Method

The process of turning an objection into a reason to buy.

Paint Thinner

A solvent used to thin oil-based paints or clean up after their use, often composed of volatile organic compounds.

Boomerang Technique

A sales strategy where objections raised by a customer are turned around or used by the seller to further the argument in favor of making a sale.