Allowance for Doubtful Accounts Has an Unadjusted Balance of $1,100

question 80

Multiple Choice

Allowance for Doubtful Accounts has an unadjusted balance of $1,100 at the end of the year, and an analysis of customers' accounts indicates doubtful accounts of $12,900.Which of the following records the proper provision for doubtful accounts?

• A) Increase Uncollectible Accounts Expense, $14,000; increase Allowance for Doubtful Accounts, $14,000
• B) Decrease Allowance for Doubtful Accounts, $14,000; decrease Uncollectible Accounts Expense, $14,000
• C) Decrease Allowance for Doubtful Accounts, $11,800; decrease Uncollectible Accounts Expense, $11,800
• D) Increase Uncollectible Accounts Expense, $11,800; increase Allowance for Doubtful Accounts, $11,800

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Definitions:

Cost Of Goods Sold

Expenses directly tied to the production process of goods a company markets.

Beginning Inventory

The value of goods available for sale or use at the start of an accounting period, carried over from the preceding period.

Cost Of Goods Sold

The total cost directly involved in producing goods or services, including materials and labor.

Net Income

The amount of money left after all expenses, taxes, and costs have been subtracted from a company's total revenue.