Question

Your company uses the again of accounts receivable method. Net credit sales are unchanged from last year, the year-end balance in Accounts Receivable is unchanged from the previous years ending balance, and there were no write-offs during the current year. The company previously averaged about 20% of its total accounts receivable in the "over 90 days past due" category and now has 35% in this category at the end of the current year. The dollar amount of the adjustment to record Bad Debt Expense in the current year:

A) decline, thus increasing the ending balance of the Allowance for Doubtful Accounts account.

B) increase, thus increasing the ending balance of the Allowance for Doubtful Accounts account.

C) decline, thus reducing the ending balance of the Allowance for Doubtful Accounts account.

D) increase, thus reducing the ending balance of the Allowance for Doubtful Accounts account.

Answer

This answer is hidden. It contains 244 characters.