Kennedy Company Uses the Balance Sheet Approach in Estimating Uncollectible

question 41

Multiple Choice

Kennedy Company uses the balance sheet approach in estimating uncollectible accounts expense.The company prepares an adjusting entry to recognize this expense at the end of each month.During the month of July,the company wrote-off a $3,500 receivable and made no recoveries of previous write-offs.Following the adjusting entry for July,the credit balance in the Allowance for Doubtful Accounts was $3,000 larger than it was on July 1.What amount of uncollectible account expense was recorded for July?

• A)$2,500.
• B)$1,000.
• C)$1,500.
• D)$6,500.

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