At the end of the current year, using the aging of accounts receivable method, management estimated that $23,750 of the accounts receivablebalance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $455. Whatadjusting entry should the company make at the end of the current year to record its estimated bad debts expense?Multiple ChoiceBad Debts Expense23,295Allowance for Doubtful Accounts23,295ОAccounts Receivable24,205Allowance for Doubtful Accounts24,205ОBad Debts Expense24,205Allowance for Doubtful Accounts24,205Bad Debts ExpenseAllowance for Doubtful AccountsAccounts ReceivableBad Debts Expense23,75023,75023,750455 Bad Debts ExpenseAllowance for Doubtful Accounts23,29523,295Accounts Receivable24,205Allowance for Doubtful Accounts24,205Bad Debts Expense24,205Allowance for Doubtful Accounts24,205Bad Debts ExpenseAllowance for Doubtful AccountsAccounts ReceivableBad Debts ExpenseSales23,75023,75023,75045524,205

Step 1: Required allowance for bad debts If you use the aging of account receivables method, the 3%…

Answered: At the end of the current year, using…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 9MC: Which method delays recognition of bad debt until the specific customer accounts receivable is...

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A6 What are the advantages and disadvantages of using the following Allowance for Expected Credit Losses (AECL) estimates? 1) AECL based of 3rd party credit ratings and Aging of accounts receivab 2) AECL based on Customer Response Score (CR 3) AECL based on write-off history and regionS)le
The difference between accounts receivable and allowance for doubtful accounts is O a. the bad debt expense O b. the net realizable value of accounts receivable O c. the accounts receivable turnover O d. none of these choices
What is the amount received by partially secured creditor? A. P40,000B. P60,000C. P70,000D. P65,000
15-The accounts receivable that cannot be collected because of their bankruptcy or another reason are termed as a. Bad customers b. Uncollectible accounts c. Collectible accounts d. Doubtful accounts
All bad debts balances should be removed from accounts receivable balances when they are determined to be uncollectible True o false
When the allowance method of recognizing bad debt expense is used, the allowance for doubtful accounts decrease when Specific account receivable is collected Account previously written off is collected Account previously written off becomes uncollectible Specific uncollectible account is written off
When the allowance method of recognizing bad debt expense is used, the allowance for doubtful accounts would decrease when Account previously written off is collected Specific uncollectible account is written off Specific account receivable is collected Account previously written off becomes collectible
33-Accounts receivable that cannot be collected due to bankruptcy or another reason are referred to as a. Uncollectible accounts b. Doubtful accounts c. Collectible accounts d. Bad customers
Which method delays recognition of bad debt until the specific customer accounts receivable is identified? A. income statement method B. balance sheet method C. direct write-off method D. allowance method
What is the normal journal entry for recording bad debt expense under the allowance method? a. Debit Accounts Receivable, credit Allowance for Doubtful Accounts. 1. b. Debit Allowance for Doubtful Accounts, credit Bad Debt Expense. Debit Bad Debt Expense, credit Allowance for Doubtful Accounts. C. d. Debit Allowance for Doubtful Accounts, credit Accounts Receivable. Explain the answer you selected: 2. Under the allowance method of recognizing uncollectible accounts, the entry to write off an uncollectible account а. has no effect on net income b. decreases net income c. increases the allowance for uncollectible accounts d. has no effect on the allowance for uncollectible accounts Explain the answer you selected:
Accounts receivable that cannot be collected due to bankruptcy or another reason are referred to as a. Collectible accounts b. Doubtful accounts c. Bad customers d. Uncollectible accounts
The Allowance for Doubtful Accounts account is a contra-account that offsets: Multiple Choice Bad Debt Expense. Cash. Net Income. Accounts Receivable.

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