Allowance for Doubtful Accounts Has a Debit Balance of $2,500

question 74

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $2,500 at the end of the year (before adjustment) , and bad debt expense is estimated at 4% of net credit sales. If net credit sales are $800,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts is

• A) $29,500
• B) $34,500
• C) $32,000
• D) cannot be determined

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Definitions:

Stress Reaction

The physical, mental, or emotional response to an event or condition that disturbs the balance or equilibrium of a person's state.

Interstate

Pertaining to the system of highways that connect major cities across states in the United States, also used to describe anything occurring between states.

Stressor

A factor or event that causes stress to an organism, triggering a physical or emotional response.

Stress Reaction

The body's response to any demand or threat, involving physiological and psychological adjustments.