Allowance for Doubtful Accounts Has an Unadjusted Balance of $500

question 46

Multiple Choice

Allowance for Doubtful Accounts has an unadjusted balance of $500 at the end of the year,and an analysis of accounts in the customers ledger indicates doubtful accounts of $15,000.Which of the following records the proper provision for doubtful accounts?

• A)Increase Uncollectible Accounts Expense,$14,500;increase Allowance for Doubtful Accounts,$14,500
• B)Increase Uncollectible Accounts Expense,$15,000;increase Allowance for Doubtful Accounts,$15,000
• C)Increase Uncollectible Accounts Expense,$14,000;increase Allowance for Doubtful Accounts,$14,000
• D)Increase Uncollectible Accounts Expense,$15,500;increase Allowance for Doubtful Accounts,$15,500

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Definitions:

Overwhelmed

Experiencing a strong emotional effect to the extent of being unable to function normally due to an excessive amount of something.

Predictability

The extent to which future events or behaviors can be anticipated based on current knowledge or past events.

Stability

The quality of being stable; having consistency or permanence, and resistance to change or deterioration over time.

Continuity

The unbroken and consistent existence or operation of something over a period of time.