An Aging of a Company's Accounts Receivable Indicates That Estimate

question 49

Multiple Choice

An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $5,000. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record the bad debt expense for the period will require a

• A) debit to Allowance for Doubtful Accounts for $3,800.
• B) debit to Bad Debt Expense for $3,800.
• C) debit to Allowance for Doubtful Accounts for $5,000.
• D) credit to Allowance for Doubtful Accounts for $5,000.

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Definitions:

Ethics

A set of moral principles or values that govern individuals' behaviors or the conducting of an activity.

Absenteeism

The habitual or intentional failure to attend work or obligations without valid reason, often considered a sign of poor job satisfaction or organizational issues.

Generous Sick Leave

An employee benefit policy that provides a substantial amount of paid leave for personal illness or the care of sick family members.

Globalization

Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale, facilitated by advancements in communication and transportation.