At the Beginning of the Year, the Balance in Allowance

question 150

Multiple Choice

At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $760. During the year, previously written off accounts of $120 are reinstated and accounts totaling $740 are written off as uncollectible. The end-of-year balance (before adjustment) in Allowance for Doubtful Accounts should be

• A) $760
• B) $120
• C) $140
• D) $740

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Definitions:

Diesel Fuel

A type of fuel derived from petroleum, used in diesel engines.

Gallons

A unit of volume for fluid measure equal to four quarts, used in the United States.

Minutes

A unit of time equal to sixty seconds or one-sixtieth of an hour.

Hours

A unit of time equal to 60 minutes.