Allowance for Doubtful Accounts Has a Credit Balance of $500

question 153

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment) , and bad debt expense is estimated at 3% of credit sales. If credit sales are $300,000, the amount of the adjusting entry to record the estimated uncollectible accounts receivable

• A) is $8,500
• B) is $9,500
• C) is $9,000
• D) cannot be determined

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Definitions:

Organic Product

A compound that results from organic reactions, often characterized by the presence of carbon atoms bonded to hydrogen, oxygen, or other carbon atoms.

Major

Referring to the primary or most significant product, outcome, or component in a mixture or reaction.

Stereochemistry

The examination of how atoms are spatially organized within molecules and how these layouts influence the molecules' physical and chemical characteristics.

Organic Product

Substances that result from organic chemistry reactions, often characterized by their carbon-based structure.