Question
An aging of a company's accounts receivable indicates that $14000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1100 credit balance,
An aging of a company's accounts receivable indicates that $14000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1100 credit balance, the adjustment to record bad debts for the period will require a
A. debit to Allowance for Doubtful Accounts for $12900.
B. debit to Bad Debt Expense for $12900.
C. credit to Allowance for Doubtful Accounts for $14000.
D. debit to Bad Debt Expense for $14000.
To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a
A. debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.
B. debit to Loss on Credit Sales Revenue and a credit to Accounts Receivable.
C. debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts.
D. debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts.
Two bases for estimating uncollectible accounts are:
A. percentage of assets and percentage of sales.
B. percentage of receivables and percentage of total revenue.
C. percentage of current assets and percentage of sales.
D. percentage of receivables and percentage of sales.
Haven Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $600000 and credit sales are $2700000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Haven Company make to record bad debt expense if the Allowance for Doubtful Accounts has a $5000 credit balance before adjustment?
A. Bad Debt Expense19000
Accounts Receivable19000
B. Bad Debt Expense19000
Allowance for Doubtful Accounts19000
C. Bad Debt Expense24000
Accounts Receivable24000
D. Bad Debt Expense24000
Allowance for Doubtful Accounts24000
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