Allowance for Doubtful Accounts Has a Debit Balance of $1,100

question 109

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment) , and an analysis of customers' accounts indicates uncollectible receivables of $12,900. Which of the following entries records the proper adjustment for Bad Debt Expense?

• A) debit Bad Debt Expense, $14,000; credit Allowance for Doubtful Accounts, $14,000
• B) debit Allowance for Doubtful Accounts, $14,000; credit Bad Debt Expense, $14,000
• C) debit Allowance for Doubtful Accounts, $11,800; credit Bad Debt Expense, $11,800
• D) debit Bad Debt Expense, $11,800; credit Allowance for Doubtful Accounts, $11,800

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Definitions:

Self-Actualization

The realization or fulfillment of one's talents and potentialities, regarded as a drive or need present in everyone.

Existence Needs

Basic human necessities required for survival, such as food, shelter, and safety.

Needs

Fundamental requirements or desires that drive individuals to act, ranging from basic physical needs to complex psychological motivations.

Need Deficiencies

A state where there is a lack or insufficiency of something necessary or desired within an individual or organization.