Allowance for Doubtful Accounts Has a Debit Balance of $2,300

question 122

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year (before adjustment) . The company prepares an analysis of customers' accounts and estimates the amount of uncollectible accounts to be $31,900. Which of the following adjusting entries is needed to record the Bad Debt Expense for the year?

• A) debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200
• B) debit Allowance for Doubtful Accounts, $34,200; credit Bad Debt Expense, $34,200
• C) debit Allowance for Doubtful Accounts, $29,600; credit Bad Debt Expense, $29,600
• D) debit Bad Debt Expense, $29,600; credit Allowance for Doubtful Accounts, $29,600

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Definitions:

Rational Emotive Therapy

A psychotherapy procedure introduced by Ellis that examines the irrational reasoning causing emotional problems.

A-B-C Process

A model in cognitive behavioral therapy outlining the sequence of Antecedent, Behavior, and Consequence.

Goals

Targets or outcomes that an individual or organization aims to achieve, which guide behavior and decision-making.

De Jure Corporation

refers to a corporation that is legally incorporated and recognized by the state, fulfilling all statutory requirements.