At the End of the Current Year, Accounts Receivable Has

question 20

Multiple Choice

At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,500,000. An analysis of receivables estimates uncollectible receivables as $25,000.​Determine the amount of the adjusting entry for bad debt expense and the adjusted balance of Allowance for Doubtful Accounts, respectively.​

• A) $19,500 and $25,000
• B) $30,500 and $525,000
• C) $19,500 and $525,000
• D) $30,500 and $25,000

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Definitions:

Pharmaceuticals

Refers to medicinal drugs manufactured for sale and use in healthcare.

Crowdfunding

The practice of funding a project or venture by raising small amounts of money from a large number of people, typically through the Internet.

Backer

An individual or entity that supports a project, initiative, or company financially, often through crowdfunding platforms.

Loan

A sum of money that is borrowed, usually from a financial institution, and is expected to be paid back with interest.