When a Company Uses the Allowance Method of Accounting for Uncollectible

question 57

Multiple Choice

When a company uses the allowance method of accounting for uncollectible receivables, which entry would not be found in the general journal?

• A)
• Bad Debt Expense \( \quad 500 \)
• Allowance for Doubtful Accounts \( \quad 500 \)
• B)
• Bad Debt Expense \( \quad 500 \)
• Accounts Receivable, Bob Smith\( \quad 500 \)
• C)
• \(\begin{array}{l}
• \begin{array} { l l }
• \text { Cash } & 300 \\
• \text { Allowance for Doubtful Accounts } & 200
• \end{array}\\
• \text { Accounts Receivable, Bob Smith } \quad 500
• \end{array}\)
• D)
• \( \begin{array}{ll}\text { Cash } & 500\end{array} \)
• Accounts Receivable, Bob Smith \( \quad 500 \)

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Definitions:

High Demand

A situation where the need or desire for a product, service, or skill exceeds the supply or availability at the current price, often leading to increased prices or shortages.

Projection

An estimation or forecast of future outcomes based on current or past data.

HR Estimates

Approximations or forecasts concerning human resources needs, including staffing levels and budgeting for salaries or training.

Human Capital Flow

The change in the stock of human capital over time. Factors that affect the flow of human capital include terminations, promotions, lateral movements, and demotions.