Allowance for Doubtful Accounts Has a Debit Balance of $1,100

question 109

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $1,100 at the end of the year (before adjustment) , and an analysis of customers' accounts indicates uncollectible receivables of $12,900. Which of the following entries records the proper adjustment for Bad Debt Expense?

• A) debit Bad Debt Expense, $14,000; credit Allowance for Doubtful Accounts, $14,000
• B) debit Allowance for Doubtful Accounts, $14,000; credit Bad Debt Expense, $14,000
• C) debit Allowance for Doubtful Accounts, $11,800; credit Bad Debt Expense, $11,800
• D) debit Bad Debt Expense, $11,800; credit Allowance for Doubtful Accounts, $11,800

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Definitions:

Forecast

A prediction or estimate of future trends, events, or behaviors based on current data or patterns.

Synergies

The combined effect of a group or system that exceeds the sum of their individual effects, enhancing productivity or value.

Organizations

Groups of individuals working together towards common goals with a structured framework.

Ecosystem Concept

An approach in business that views industries and markets as interconnected environments where companies work cooperatively and competitively.