When a Company Uses the Allowance Method of Accounting for Uncollectible

question 57

Multiple Choice

When a company uses the allowance method of accounting for uncollectible receivables, which entry would not be found in the general journal?

• A)
• Bad Debt Expense \( \quad 500 \)
• Allowance for Doubtful Accounts \( \quad 500 \)
• B)
• Bad Debt Expense \( \quad 500 \)
• Accounts Receivable, Bob Smith\( \quad 500 \)
• C)
• \(\begin{array}{l}
• \begin{array} { l l }
• \text { Cash } & 300 \\
• \text { Allowance for Doubtful Accounts } & 200
• \end{array}\\
• \text { Accounts Receivable, Bob Smith } \quad 500
• \end{array}\)
• D)
• \( \begin{array}{ll}\text { Cash } & 500\end{array} \)
• Accounts Receivable, Bob Smith \( \quad 500 \)

---

Definitions:

Grand Jury

A legal body empowered to conduct official proceedings to investigate potential criminal conduct and to determine whether criminal charges should be brought.

Federal Question

A matter that involves the U.S. Constitution, a federal statute or statutes, or a treaty; handled by federal district courts.

Treaty

A formally concluded and ratified agreement between countries or sovereign states.

Cyber-Jurisdiction

The authority of a court to hear a case based on Internet-related transactions.