4.An aging of a company\'s accounts receivable indicates that the estimate of th

Question

4.An aging of a company's accounts receivable indicates that the estimate of the uncollectible accounts totals $4,000. If Allowance for Doubtful Accounts has a $800 credit balance, the adjustment to record the bad debt expense for the period will require a

a. debit to Allowance for Doubtful Accounts for $4,000

b. debit to Allowance for Doubtful Accounts for $3,200

c. credit to Allowance for Doubtful Accounts for $4,000

d. debit to Bad Debt Expense for $3,200

6.Allowance for Doubtful Accounts has a credit balance of $1,300 at the end of the year (before adjustment). The company prepares an analysis of customers' accounts to estimate the amount of uncollectible accounts of $41,900. Which of the following adjusting entries would be made to record the bad debt expense for the year?

a.debit Allowance for Doubtful Accounts, $40,600; credit Bad Debt Expense, $40,600

b.debit Bad Debt Expense, $40,600; credit Allowance for Doubtful Accounts, $40,600

c.debit Allowance for Doubtful Accounts, $43,200; credit Bad Debt Expense, $43,200

d.debit Bad Debt Expense, $43,200; credit Allowance for Doubtful Accounts, $43,200

Explanation / Answer

4 The adjustment to record the bad debt expense for the period will require a debit to Bad Debt Expense for $3,200 (4000-800) Option D is correct 6 Debit Bad Debt Expense, $40,600; credit Allowance for Doubtful Accounts, $40,600(41900-1300) Option B is correct

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