A firm reported sales of $200,000 during the year and has a balance of $15,000 in its Accounts Receivable account at year-end. Prior to adjustment, Allowance for Doubtful Accounts has a credit balance of $220. The firm estimated its losses from uncollectible accounts to be 1% of sales. The entry to record the estimated losses from uncollectible accounts will include a credit to Allowance for Doubtful Accounts for:

Multiple Choice

• $1,700.

• $1,850.

• $2,000.

• $2,300.

A company uses the allowance method to account for uncollectible accounts receivable. At year end, the balance in accounts receivable is $580,000 and the balance in the allowance for doubtful accounts is a debit balance of $400. An aging analysis of accounts receivable estimates uncollectible accounts to be $8,100. The adjustment to record uncollectible accounts expense will include a:

Multiple Choice

• debit to uncollectible accounts expense for $400.

• debit to uncollectible accounts expense for $7,700.

• debit to uncollectible accounts expense for $8,100.

• debit to uncollectible accounts expense for $8,500.

A company uses the allowance method. The balance in the allowance account is a credit of $12,100. A $1,200 account is deemed to be uncollectible and is written off. After the transaction, the balance in the allowance account is a:

Multiple Choice

• debit balance of $10,900.

• credit balance of $10,900.

• debit balance of $13,300.

• credit balance of $13,300.