Asked by
Briana Burras
on Nov 12, 2024Verified
An aging of a company's accounts receivable indicates that the estimate of uncollectible receivables totals $7,900. If Allowance for Doubtful Accounts has a $700 credit balance, the adjustment to record the bad debt expense for the period will require a
A) debit to Bad Debt Expense for $8,600
B) debit to Bad Debt Expense for $7,900
C) debit to Bad Debt Expense for $7,200
D) credit to Allowance for Doubtful Accounts for $700
Allowance for Doubtful Accounts
A contra-asset account that reduces the total receivables reported to reflect the amount that is expected to be uncollectible.
Bad Debt Expense
Bad debt expense is the cost associated with accounts receivable that a company cannot collect.
- Calculate the necessary updates for the allowance for doubtful accounts.
- Assess and adjust the bad debt reserve based on the receivables' aging report.
Verified Answer
DW
Learning Objectives
- Calculate the necessary updates for the allowance for doubtful accounts.
- Assess and adjust the bad debt reserve based on the receivables' aging report.
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