Allowance for Doubtful Accounts Has a Debit Balance of $600

question 172

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $600 at the end of the year (before adjustment) , and an analysis of accounts in the customers ledger indicates uncollectible receivables of $13,000. Which of the following entries records the proper adjusting entry for bad debt expense?

• A) debit Bad Debt Expense, $600; credit Allowance for Doubtful Accounts, $600
• B) debit Bad Debt Expense, $12,400; credit Allowance for Doubtful Accounts, $12,400
• C) debit Allowance for Doubtful Accounts, $600; credit Bad Debt Expense, $600
• D) debit Bad Debt Expense, $13,600; credit Allowance for Doubtful Accounts, $13,600

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Definitions:

Dividend Payments

Distribution of a portion of a company's earnings to its shareholders, usually in cash or additional stock.

Dividend Yield Ratio

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Earnings Per Share

A company's profit divided by its number of common shares outstanding, indicating how much money it makes per share.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, often expressed as a percentage.