Allowance for Doubtful Accounts Has a Debit Balance of $600

question 172

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $600 at the end of the year (before adjustment) , and an analysis of accounts in the customers ledger indicates uncollectible receivables of $13,000. Which of the following entries records the proper adjusting entry for bad debt expense?

• A) debit Bad Debt Expense, $600; credit Allowance for Doubtful Accounts, $600
• B) debit Bad Debt Expense, $12,400; credit Allowance for Doubtful Accounts, $12,400
• C) debit Allowance for Doubtful Accounts, $600; credit Bad Debt Expense, $600
• D) debit Bad Debt Expense, $13,600; credit Allowance for Doubtful Accounts, $13,600

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Definitions:

Powerlessness

A feeling of lacking control or influence over one's circumstances, often encountered in clinical settings as a psychological or emotional state.

General Anesthesia

A medically induced state of unconsciousness, accompanied by a loss of protective reflexes, to facilitate surgery or other painful procedures.

Caregiver Role Strain

The stress or burden experienced by individuals who provide care for family members or others with long-term illnesses or disabilities.

Postanesthesia Care Unit

The specialized care unit where patients recover from anesthesia following surgery.