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:

Lymphocytic Activation

The process by which lymphocytes (a type of white blood cell) increase in response to infection or disease.

Allergic Asthma

A type of asthma triggered by exposure to allergens, leading to inflammation and narrowing of the airways, causing difficulty in breathing.

Allergen-IgE Response

An immune system reaction where immunoglobulin E antibodies are produced in response to an allergy-causing substance.

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A type of white blood cell that plays a vital role in the immune system, particularly in allergic reactions and inflammation.