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Question
A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $39,375 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $3,285. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
A.
| Bad Debt Expense | 36,090 | |
| Allowance for Doubtful Accounts | 36,090 |
B.
| Bad Debt Expense | 42,660 | |
| Allowance for Doubtful Accounts | 42,660 |
C.
| Bad Debt Expense | 39,375 | |
| Allowance for Doubtful Accounts | 39,375 |
D.
| Accounts Receivable | 39,375 | |
| Bad Debt Expense | 3,285 | |
| Sales | 42,660 |
E.
| Accounts Receivable | 36,090 | |
| Allowance for Doubtful Accounts | 36,090 |
Answer: A
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Related questions
Q:
Periods
12 Percent 1
8929 2
1.6901 3
2.4018 4
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Q:
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Q:
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Q:
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B. A monthly period separated into daily budgets.
C. A quarterly period separated into weekly budgets.
D. An annual period separated into weekly budgets.
E. An annual period separated into quarterly and monthly budgets.
Q:
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B. From the bottom up following a participatory process.
C. Solely by the budget committee.
D. By the CEO.
E. After the accounting period has begun.
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C. A budget committee.
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E. Lower level management.
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June
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530
600 Ending Raw Materials Inventory
663 lbs. Ending Finished Goods Inventory
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(3) Operating expenses are paid in the month they are incurred.
(4) A minimum cash balance of $40,000 is required at the end of each month.
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Q:
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C. It is not permitted to be used for tax reporting.
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When units produced exceed the units sold, income under absorption costing is higher than income under variable costing.