Allowance for Doubtful Accounts Has a Debit Balance of $2,300

question 122

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year (before adjustment) . The company prepares an analysis of customers' accounts and estimates the amount of uncollectible accounts to be $31,900. Which of the following adjusting entries is needed to record the Bad Debt Expense for the year?

• A) debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200
• B) debit Allowance for Doubtful Accounts, $34,200; credit Bad Debt Expense, $34,200
• C) debit Allowance for Doubtful Accounts, $29,600; credit Bad Debt Expense, $29,600
• D) debit Bad Debt Expense, $29,600; credit Allowance for Doubtful Accounts, $29,600

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Definitions:

National Health Insurance

A government-funded program that provides health insurance coverage for all or nearly all of a country's citizens.

Managed Care Organizations

Health care providers that offer a defined set of services to members for a fixed, prepaid fee, focusing on prevention and controlled costs.

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The death of babies under one year of age, often used as an indicator of the health and well-being of a population.

Life Expectancy

This term refers to the average number of years a person is expected to live based on statistical averages, often influenced by factors like genetics, lifestyle, and healthcare access.