At the End of the Year,Mark Inc

question 110

Multiple Choice

At the end of the year,Mark Inc.estimates future bad debts to be $6,500.The Allowance for Uncollectible Accounts has a credit balance of $2,500 before any year-end adjustment.What adjustment should Mark Inc.record for the estimated bad debts at the end of the year?

• A)Debit Bad Debt Expense,$6,500;credit Allowance for Uncollectible Accounts,$6,500.
• B)Debit Bad Debt Expense,$4,000;credit Allowance for Uncollectible Accounts $4,000.
• C)Debit Allowance for Uncollectible Accounts,$9,000;credit Bad Debt Expense,$9,000.

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Definitions:

Government Setting

The environment and conditions created by governmental policies, laws, and regulations.

Price Of Pencils

The amount of money required to purchase a pencil, determined by factors such as production costs, demand, and supply.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service, intended to protect consumers from conditions that could make necessary goods unaffordable.

Maximum Price

A ceiling price set by an authority, above which the sale of a good or service is not allowed.