When Using the Allowance Method to Estimate Uncollectible Accounts Receivable

question 42

Multiple Choice

When using the allowance method to estimate uncollectible accounts receivable based on an analysis of receivables shows that $790 of accounts receivables are uncollectible. The Allowance for Doubtful Accounts has a debit balance of $120. The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of:

• A) $120
• B) $790
• C) $670
• D) $910

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