Allowance for Doubtful Accounts Has a Credit Balance of $800

question 102

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment) , and an analysis of accounts in the customer ledger indicates the estimated amount of uncollectible accounts should be $16,000. Based on the estimate above, which of the following adjusting entries should be made?

• A) debit Bad Debt Expense, $800; credit Allowance for Doubtful Accounts, $800
• B) debit Bad Debt Expense, $15,200; credit Allowance for Doubtful Accounts, $15,200
• C) debit Allowance for Doubtful Accounts, $800; credit Bad Debt Expense, $800
• D) debit Bad Debt Expense, $16,800; credit Allowance for Doubtful Accounts, $16,800

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Definitions:

Physical Appearance

Refers to the outward look or aspects of a person, including body shape, facial features, hair, and other physical traits.

Visual Stimulus

Any object or event in the environment that can be seen and thus influences the behavior or perception of the observer.

Blindsight

A phenomenon in which individuals with certain types of brain damage can respond to visual stimuli without consciously perceiving them.

The Cocktail Party Effect

The ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, as when a person can focus on a single conversation in a noisy environment.