Question
7. Flora Co. uses the allowance method of accounting for uncollectible accounts receivable. The entry to write off an account that has been determined to
7.
Flora Co. uses the allowance method of accounting for uncollectible accounts receivable. The entry to write off an account that has been determined to be uncollectible would be to
a.debit Accounts Receivable and credit Bad Debt Expense.
b.debit Allowance for Doubtful Accounts and credit Accounts Receivable.
c.debit Sales Returns and Allowances and credit Accounts Receivable.
d.debit Bad Debt Expense and credit Allowance for Doubtful Accounts
8.
Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and an analysis of accounts receivable in the customer ledger indicates doubtful accounts of $16,000. Which of the following entries records the proper provision for doubtful accounts under the analysis of receivables method?
a.Debit Bad Debt Expense, $15,500; credit Allowance for Doubtful Accounts, $15,500
b.Debit Bad Debt Expense, $500; credit Allowance for Doubtful Accounts, $500
c.Debit Bad Debt Expense, $16,500; credit Allowance for Doubtful Accounts, $16,500
d.Debit Allowance for Doubtful Accounts, $500; credit Bad Debt Expense, $500
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