Using its aging of accounts receivable, Age Old, Inc. estimates that $90,000 of its $4,000,000 of accounts receivable will be uncollectible. Prior to making its adjusting entry, the unadjusted Allowance for Doubtful Accounts has a debit balance of $1,000. After the adjustment, the:
A. Allowance for Doubtful Accounts will have an $89,000 credit balance.
B. Allowance for Doubtful Accounts will have a $91,000 credit balance.
C. Allowance for Doubtful Accounts will have a $90,000 credit balance.
D. Bad Debt Expense will equal $90,000.
Answer: C
You might also like to view...
In word association, responses are analyzed by calculating ________
A) the frequency with which any word is given as a response B) the amount of time that elapses before a response is given C) the number of respondents who do not respond at all to a test word within a reasonable period of time D) all of the above
Involuntary petitions in straight bankruptcy can be filed against:
A. savings and loan associations. B. a nonprofit organization. C. a debtor engaged in business. D. banking corporations and credit unions.
Which of the following concepts best characterizes the accrual basis of accounting?
a. Conservatism b. Matching c. Understandability d. Going concern e. Unit of measurement
PCM is a technique used
a. to convert data to analog form b. to convert voice to digital form c. to convert protocols d. none of the above