Using the aging approach, management estimates that 10% of the $30,000 of Accounts Receivable will be uncollectible. The Allowance for Doubtful Accounts has a $300 unadjusted debit balance. The adjusting entry to record estimated bad debts includes a:
A. debit to Bad Debt Expense of $2,700.
B. credit to Allowance for Doubtful Accounts of $3,000.
C. debit to Bad Debt Expense of $3,000.
D. debit to Bad Debt Expense of $3,300.
Answer: D
You might also like to view...
Bonds are generally issued in denominations of $1,000
a. True b. False Indicate whether the statement is true or false
All of the following items would appear on the balance sheet except
A) an investment in another company's bonds B) an investment in marketable securities C) a realized gain on the sale of a equipment D) the premium related to a bond liability that is still two years from maturity
Which of the following products was actually a failure after marketing research predicted it would be successful?
A) Ice Breakers Pacs B) Coca-Cola C2 C) Wolfgang Puck's Self-Heating Latte D) Coca-Cola Blak E) all of the above
Which of the following is not a factor that directly affects the budget for a discretionary cost?
a. the importance of the activity to the achievement of the organization's goals b. last period's budget c. the expected level of operations d. managerial negotiations in the budgeting process