Allowance for Doubtful Accounts Has a Credit Balance of $2,100

question 128

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $2,100 at the end of the year (before adjustment) , and an analysis of customers' accounts indicates uncollectible receivables of $19,700. Which of the following entries records the proper adjustment for bad debt expense?

• A) debit Allowance for Doubtful Accounts, $17,600; credit Bad Debt Expense, $17,600
• B) debit Allowance for Doubtful Accounts, $21,800; credit Bad Debt Expense, $21,800
• C) debit Bad Debt Expense, $21,800; credit Allowance for Doubtful Accounts, $21,800
• D) debit Bad Debt Expense, $17,600; credit Allowance for Doubtful Accounts, $17,600

Describe the conceptual and practical distinctions between partnerships, limited liability companies (LLCs), and corporations.

Identify the requirements and legal status for corporations to be recognized as de jure, de facto, or by estoppel.

Explain the corporate citizenship concept and its implications for where a corporation can legally operate.

Understand the legal procedures for forming an LLC and the significance of articles of organization.

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Definitions:

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