The Allowance for Bad Debts has a credit balance of $9,000 before the adjusting
ID: 2488606 • Letter: T
Question
The Allowance for Bad Debts has a credit balance of $9,000 before the adjusting entry for bad debt expense. The Accounts Receivable control account has a debit balance of $200,000 before the adjusting After analyzing the accounts the company's management estimates that 75% Receivable will be uncollectible. Using the allowance method, what will be the balance Allowance for Uncollectible Accounts reported on the year-end balance sheet? $15,000 $6,000 $15,900 $9,000 The Allowance for Bad Debts has a credit balance of $9,000 before the adjusting entry lot bad debt expense. The Accounts Receivable control account has a debit balance of $200,000 before the entry for bad debt expense. After analyzing the accounts the company's management estimates that of their Accounts Receivable will be uncollectible. Using the allowance method, what will be the of Bad Debts Expense recorded as an adjusting journal entry at year end? $15,000 $6,000 $15,900 $9,000Explanation / Answer
Estimated = 200,000*7.5% = $15,000
b) bad debt recorded will be 15,000 – 9000 = 6,000
option B
Estimated = 200,000*7.5% = $15,000
- Balance reported will be $15,000 hence option A
b) bad debt recorded will be 15,000 – 9000 = 6,000
option B
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