At December 31,before Adjusting and Closing the Accounts Had Occurred,the

question 78

Multiple Choice

At December 31,before adjusting and closing the accounts had occurred,the Allowance for Doubtful Accounts of Seaboard Corporation showed a debit balance of $3,200.An aging of the accounts receivable indicated the amount probably uncollectible to be $2,100.Under these circumstances,a year-end adjusting entry for uncollectible accounts expense would include a:

• A)Debit to the Allowance for Doubtful Accounts for $1,100.
• B)Credit to the Allowance for Doubtful Accounts for $1,100.
• C)Debit to Uncollectible Accounts Expense of $2,100.
• D)Debit to Uncollectible Accounts Expense of $5,300.

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Definitions:

Auctions Reserve

The minimum price set by the seller that must be met for the sale to occur during an auction.

Auctions Without Reserve

Auctions where the item for sale will be sold to the highest bidder regardless of the bid amount, with no minimum selling price.

Implied-In-Law Contract

An obligation created by law for equity and fairness, even though no actual agreement was made by the parties.

Quasi-Contract

An obligation imposed by law in the absence of a contract to prevent unjust enrichment, where one party receives a benefit at the expense of another without a formal agreement.