Sandy Corporation Uses the Allowance Method of Accounting for Uncollectible

question 44

Multiple Choice

Sandy Corporation uses the allowance method of accounting for uncollectible accounts.During 2014,Sandy had charged $80,000 to Bad Debt Expense,and wrote off accounts receivable of $90,000 as uncollectible.What was the amount of the decrease in working capital as a result of these entries?

• A) $0
• B) $90,000
• C) $80,000
• D) $10,000