Scott CoReported an Allowance for Doubtful Accounts of $28,000 (Credit)at December

question 50

Multiple Choice

Scott Co.reported an allowance for doubtful accounts of $28,000 (credit) at December 31,2013,before performing an aging of accounts receivable.As a result of the aging,Scott determined that an estimated $27,000 of the December 31,2013,accounts receivable would prove uncollectible.The adjusting entry required at December 31,2013,would be

• A) Doubtful Accounts Expense ...........27,000
• Allowance for Doubtful Accounts ...27,000
• B) Doubtful Accounts Expense ...........27,000
• Accounts Receivable ...............27,000
• C) Allowance for Doubtful Accounts .....1,000
• Doubtful Accounts Expense .........1,000
• D) Doubtful Accounts Expense ...........1,000
• Allowance for Doubtful Accounts ...1,000

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Definitions:

Thick Skin

Skin in the palms, soles, and tips of the digits; has all five epidermal strata.

Friction

The resistance that one surface or object encounters when moving over another.

Dermis

The dermis is the thick layer of skin beneath the epidermis, containing nerve endings, sweat glands, hair follicles, and blood vessels, contributing to skin's flexibility and strength.

Melanocytes

Cells in the skin and hair follicles responsible for the production and distribution of melanin, giving skin and hair their color.