Allowance for Doubtful Accounts Has a Debit Balance of $1,100

question 36

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment) , and an analysis of customers' accounts indicates uncollectible receivables of $12,900. Which of the following entries records the proper adjustment for bad debt expense?

• A) debit Bad Debt Expense, $14,000; credit Allowance for Doubtful Accounts, $14,000
• B) debit Allowance for Doubtful Accounts, $14,000; credit Bad Debt Expense, $14,000
• C) debit Allowance for Doubtful Accounts, $11,800; credit Bad Debt Expense, $11,800
• D) debit Bad Debt Expense, $11,800; credit Allowance for Doubtful Accounts, $11,800

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Definitions:

Race

A social construct used to categorize humans into large and distinct groups based on physical appearance, ancestry, culture, history, and social identity.

Stratification System

The structured ranking of individuals and groups in any society based on wealth, power, and status.

Immigration

The action of coming to live permanently in a foreign country.

Economic Control

The regulation and manipulation of the economic activities and institutions by entities such as governments or large corporations, often to maintain power or achieve specific economic objectives.