The Allowance for Bad Debts Account Has a Debit Balance

question 223

Multiple Choice

The Allowance for Bad Debts account has a debit balance of $8,000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger, the company's management estimates that uncollectible accounts will be $12,000. What will be the amount of the adjustment in the Allowance for Bad Debts account?

• A) $19,250
• B) $12,000
• C) $18,900
• D) $20,000

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Definitions:

Vascular Plant

Plants possessing specific tissues known as xylem and phloem, which are crucial for the movement of water, nutrients, and sugars within the organism.

Fern

A type of non-flowering plant that reproduces via spores and has fronds, commonly found in moist, shaded areas.

Nonvascular Plants

Plants that lack vascular tissue, including xylem and phloem, making them incapable of transporting water and nutrients efficiently.

Archegonium

A female reproductive structure in ferns, mosses, and some conifers, where the egg cell is produced and fertilization occurs.