A Company Uses the Allowance Method of Accounting for Bad

question 37

Multiple Choice

A company uses the allowance method of accounting for bad debt. During 2001, an important customer became bankrupt and a related receivable of $6,400 was deemed uncollectible. The 2001 entry to record this event would be: $$\begin{array} { | l | l | l | l | } \hline 1 &\text { Bad debt expense } & 6,400 & \\\hline &\text { A llowance tor doubtful accounts } & & 6,400 \\\hline 2 &\text { Loss on receivable } & 6,400 & \\\hline &\text { Accounts receivable } & & 6,400 \\\hline 3& \text { Bad debt expense } & 6,400 & \\\hline& \text { Accounts receiv able } & & 6,400 \\\hline 4 &\text { Loss on receivable } & 6,400 & \\\hline &\text { Allowance tor doubtful accounts } & & 6,400 \\\hline 5& \text { Allowance tor doubtful accounts } & 6,400 & \\\hline &\text { Accounts receivable } & & 6,400 \\\hline\end{array}$$

• A) Choice 1
• B) Choice 2
• C) Choice 3
• D) Choice 4
• E) Choice 5

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Definitions:

Genetic Component

The contribution of genes to the development or manifestation of a trait or condition.

Adopted Children

Children who have been legally taken by individuals or couples to be cared for as their own.

Identical Twins

Twins who develop from a single fertilized egg that splits and forms two embryos, sharing 100% of their DNA.

Nonidentical Twins

Twins born from two separate eggs fertilized at the same time, leading to siblings that share genetic similarities but are not genetically identical.