$1$ pts

Doe Company's Accounts Receivable account has a balance of $$400\mathrm{.}000$ at the end of the year, ahd the company estimates the Net Realizable Value of Accounts Receivable to be $$384,000.$ The Allowance for Doubtrul Accounts has a credit balance of $$9\mathrm{.}000$ at the beginning of the current vear, and during the year. the company wrote off $$7,500$ of accounts receivable. The vear$-$end adfusting entry woulc require a:

A credit to Allowance for Doubtful Accounts for $$17,500$

A debit to Bad Debts Expense for $$7,000$

A debit to Bad Debts Expense for $$14,500$

A credit to Allowance for Doubtful Accounts for $$16,000$

Question $6$

If a company fails to make an adjusting entry to accrue interest on a note receivable, then this error:

Overstates expenses

Understates income