The Allowance for Doubtful Debts Account Has a Credit Balance

question 19

Multiple Choice

The Allowance for doubtful debts account has a credit balance of $8500 before the adjusting entry for bad debt expense.After analysing the accounts in the accounts receivable subsidiary ledger using the ageing method,the company's management estimates that uncollectable accounts will be $14,500.What will be the balance of the Allowance for doubtful debts reported on the balance sheet?

• A)$6000
• B)$13,050
• C)$23,000
• D)$14,500

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