At the End of the Current Year, Accounts Receivable Has

question 64

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 net 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 of 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:

Discriminate

The act of making distinctions between people or things based on class, race, gender, etc., often leading to unfair treatment.

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Infants who are generally calm, easily soothed, and adaptable to new situations or routines, making them perceived as easier to care for.