Allowance for Doubtful Accounts Has a Credit Balance of $500

question 116

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment) , and bad debt expense is estimated at 3% of credit sales. If credit sales are $300,000, the amount of the adjusting entry to record the estimated uncollectible accounts receivable is

• A) $8,500
• B) $9,500
• C) $9,000
• D) Cannot be determined

---

Definitions:

Consequences

The outcomes or effects that naturally follow from particular actions or behaviors.

Direct Interviewing

A method of collecting information through face-to-face conversation, where questions are asked in a straightforward manner.

Nonverbal Exchanges

Communication between individuals that does not involve words but rather body language, facial expressions, and other visual cues.

Simulated Enactment

The act of imitating or mimicking actions within a controlled environment as if performing them in real life.