The Allowance for Bad Debts Account Has a Credit Balance

question 111

Multiple Choice

The Allowance for Bad Debts account has a credit balance of $8,300 before the adjusting entry for bad debts expense.After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of-receivables method,the company's management estimates that uncollectible accounts will be $14,700.What will be the balance of the Allowance for Bad Debts reported on the balance sheet?

• A)$14,700
• B)$6,400
• C)$23,000
• D)$13,230

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Definitions:

Radial

Relating to, or situated near the radius or forearm; in a broader sense, spreading out in all directions from a common center.

Ulnar

Pertaining to the ulna, one of the two long bones in the forearm, or related to areas supplied by the ulnar nerve.

Brachiocephalic Artery

The brachiocephalic artery is a major blood vessel arising from the aortic arch that supplies blood to the right arm and the head and neck.

Left Common Carotid

A major artery in the neck that supplies blood to the head, neck, and brain.