Allowance for Doubtful Accounts Has a Debit Balance of $600

question 172

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $600 at the end of the year (before adjustment) , and an analysis of accounts in the customers ledger indicates uncollectible receivables of $13,000. Which of the following entries records the proper adjusting entry for bad debt expense?

• A) debit Bad Debt Expense, $600; credit Allowance for Doubtful Accounts, $600
• B) debit Bad Debt Expense, $12,400; credit Allowance for Doubtful Accounts, $12,400
• C) debit Allowance for Doubtful Accounts, $600; credit Bad Debt Expense, $600
• D) debit Bad Debt Expense, $13,600; credit Allowance for Doubtful Accounts, $13,600

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Definitions:

Behavior Modification

The use of learning techniques to alter or improve individual behavior.

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The drive or incentive that propels individuals to achieve work-related goals, often influenced by personal satisfaction, rewards, and the work environment.

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