Deck 15: Accounts Receivable and Uncollectible Accounts

Question 1

Which of the following statements is not correct?

A)When using the direct charge-off method, there is no Allowance for Doubtful Accounts account.
B)The use of the direct charge-off method of recording losses from uncollectible accounts usually results in the balance in the Accounts Receivable account being overstated.
C)The direct charge-off method of recording losses from uncollectible accounts is the method required by Federal income tax laws.
D)The direct charge-off method of recording losses from uncollectible accounts is an application of the matching principle.

Answer 1

D

Question 2

The adjusting entry to record estimated losses from uncollectible accounts consists of a debit to Allowance for Doubtful Accounts.

Answer 2

False

Question 3

To achieve good internal control over accounts receivable, it is important to separate the recording of accounts receivable transactions and the collection of cash from customers.

Answer 3

True

Question 4

Allowance for Doubtful Accounts is a liability account.

Question 5

When the estimate of the losses from uncollectible accounts is based on the aging method, the primary concern is proper valuation of the accounts receivable on the balance sheet.

Question 6

Allowance for Doubtful Accounts is classified as

A)a Liability on the Balance Sheet.
B)a Contra Asset on the Balance Sheet.
C)a Contra Expense on the Income Statement.
D)an Expense on the Income Statement.

Question 7

When the allowance method of recognizing losses from uncollectible accounts is used, the entry to record the write-off of a particular customer's account includes a debit to Uncollectible Accounts Expense.

Question 8

The adjusting entry to record estimated losses from uncollectible accounts consists of a

A)debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts.
B)debit to Uncollectible Accounts Expense and a credit to Allowance for Doubtful Accounts.
C)debit to Uncollectible Accounts Expense and a credit to Accounts Receivable.
D)debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.

Question 9

What is the type of account and normal balance of Allowance for Doubtful Accounts?
A)Contra asset, credit

A)Liability, credit
B)Asset, debit
D)Contra asset, debit

Question 10

The balance of the Allowance for Doubtful Accounts account is reported as

A)a deduction from Sales on the income statement.
B)an addition to Accounts Receivable on the balance sheet.
C)a deduction from Accounts Receivable on the balance sheet.
D)an expense on the income statement.

Question 11

When there is a partial collection of a balance previously written off, the entry to record the reinstatement of the customer's account will be for the entire amount written off.

Question 12

When the allowance method of recognizing losses from uncollectible accounts is used, the net value of accounts receivable on the balance sheet will more nearly reflect the amount that will ultimately be collected than if the direct write-off method is used.

Question 13

The allowance method may be used to record bad debt losses for income tax purposes.

Question 14

Uncollectible Accounts Expense can be called Loss from Uncollectible Accounts.

Question 15

Which of the following statements is not correct?

A)The adjusting entry to record the estimated loss from uncollectible accounts includes a credit to Accounts Receivable.
B)Losses from uncollectible accounts can be estimated by analyzing sales or accounts receivable.
C)The allowance method involves anticipating losses from uncollectible accounts by recognizing an expense for these losses before the actual accounts are written off.
D)The balance of Uncollectible Accounts Expense appears among the operating expenses on the income statement.

Question 16

Allowance for Doubtful Accounts may be used for the valuation of all types of receivables.

Question 17

When using the allowance method, the collection of an account previously written off is recorded in the cash receipts journal only.

Question 18

The balance of Allowance for Doubtful Accounts is added to the balance of Accounts Receivable on the balance sheet.

Question 19

The experience of other firms in the same line of business may be used in estimating losses from uncollectible accounts for a new firm.

Question 20

Allowance for Doubtful Accounts may, at times, have a debit balance.

Question 21

On December 31, prior to adjustment, Allowance for Doubtful Accounts has a credit balance of
$630. An analysis of the accounts receivable aging estimates $2,850 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts is

A)$2,220.
B)$3,480.
C)$2,850.
D)$630.

Question 22

A firm reported sales of $460,000 for the year. Prior to adjustment, Allowance for Doubtful Accounts has a credit balance of $560. Based on an aging of accounts receivable, the firm estimated its losses from uncollectible accounts to be $6,460. The adjusting entry to record the estimated bad debt losses will be:

A)

B)
https://d2lvgg3v3hfg70.cloudfront.net/TB3077/.
C)
11ee80ae_cb0c_e9b0_81bd_d34c781df894_TB3077_11
D)
https://d2lvgg3v3hfg70.cloudfront.net/TB3077/.

Question 23

A firm reported sales of $460,000 for the year. Prior to adjustment, Allowance for Doubtful Accounts has a credit balance of $560. Based on an aging of accounts receivable, the firm estimated its losses from uncollectible accounts to be $6,460.

-The amount to be reported on the income statement for Uncollectible Accounts Expense is:

A)$4,600.
B)$5,900.
C)$7,020.
D)$6,460.

Question 24

The existing balance in Allowance for Doubtful Accounts at the end of the year is not considered when the estimate of uncollectible accounts is based on

A)a percent of total accounts receivable outstanding.
B)a percent of net income.
C)an aging of accounts receivable.
D)a percent of net credit sales.

Question 25

A firm reported net credit sales of $960,000 for the year and an Accounts Receivable balance of
$120,000 at year-end. Prior to adjustments, Allowance for Doubtful Accounts has a debit balance of $820. The firm estimates its losses from uncollectible accounts to be one-half of 1 percent of net credit sales.

-The balance in Allowance for Doubtful Accounts after adjustment is:

A)$5,620.
B)$3,980.
C)$4,800.
D)$5,080.

Question 26

On December 31, prior to adjustment, Allowance for Doubtful Accounts has a debit balance of
$730. An analysis of the aging of the accounts receivable produces an estimate of $6,200 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts is

A)$5,470.
B)$730.
C)$6,930.
D)$6,200.

Question 27

On December 31, prior to adjustment, Allowance for Doubtful Accounts has a debit balance of
$400. An analysis of the aging of the accounts receivable produces an estimate of $3,100 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts is

A)$3,100.
B)$2,700.
C)$3,500.
D)$400.

Question 28

Under the Allowance Method of accounting for uncollectible accounts, a firm may base their estimate of uncollectible accounts on all of the following EXCEPT:

A)total accounts receivable at the end of the year
B)total current assets as of the end of the year
C)net credit sales for the year
D)aging of accounts receivable at the end of the year

Question 29

A firm reported net credit sales of $960,000 for the year and an Accounts Receivable balance of
$120,000 at year-end. Prior to adjustments, Allowance for Doubtful Accounts has a debit balance of $820. The firm estimates its losses from uncollectible accounts to be one-half of 1 percent of net credit sales.

- The entry to record the estimated losses from uncollectible accounts will include a credit to Allowance for Doubtful Accounts for

A)$4,800.
B)$5,620.
C)$5,080.
D)$3,980.

Question 30

A firm reported sales of $460,000 for the year. Prior to adjustment, Allowance for Doubtful Accounts has a credit balance of $560. Based on an aging of accounts receivable, the firm estimated its losses from uncollectible accounts to be $6,460.

-The balance in the Allowance for Doubtful Accounts after adjustment is:

A)$4,600.
B)$7,020.
C)$6,460.
D)$5,900.

Question 31

On December 31, prior to adjustments, the balance of Accounts Receivable is $28,000 and Allowance for Doubtful Accounts has a debit balance of $200. The firm estimates its losses from uncollectible accounts to be 5.5% of accounts receivable at the end of the year. The adjusting entry needed to record the estimated losses from uncollectible accounts is

A)$200.
B)$1,540.
C)$1,340.
D)$1,740.

Question 32

On December 31, prior to adjustment, Allowance for Doubtful Accounts has a credit balance of
$430. An analysis of the accounts receivable aging estimates $1,900 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts is

A)$430.
B)$1,900.
C)$2,330.
D)$1,470.

Question 33

On December 31, prior to adjustment, Allowance for Doubtful Accounts has a debit balance of
$630. An analysis of the accounts receivable aging estimates $2,850 of probable losses from uncollectible accounts. The ending balance in Allowance for Doubtful Accounts after adjustment is

A)$2,850.
B)$630.
C)$3,480.
D)$2,220.

Question 34

A firm reported sales of $450,000 for the year. Prior to adjustment, Allowance for Doubtful Accounts has a debit balance of $280. Based on an aging of accounts receivable, the firm estimated its losses from uncollectible accounts to be $3,980. The entry to record the estimated bad debt losses will be:

A)

B)

C)

D)

Question 35

On December 31, prior to adjustments, the balance of Accounts Receivable is $32,000 and Allowance for Doubtful Accounts has a credit balance of $290. The firm estimates its losses from uncollectible accounts to be 5.5% of accounts receivable at the end of the year. The adjusting entry needed to record the estimated losses from uncollectible accounts is

A)$290.
B)$1,470.
C)$1,310.
D)$1,760.

Question 36

The method of accounting for losses from uncollectible accounts that results in a valuation of the accounts receivable on the balance sheet that is a more reasonable estimate of the actual amount expected to be collected is

A)the direct charge-off method.
B)the allowance method based on a percentage of net credit sales.
C)either the allowance method or the direct charge-off method.
D)the allowance method based on aging the accounts receivable.

Question 37

A firm reported net credit sales of $355,000 for the year and an Accounts Receivable balance of
$20,000 at year-end. Prior to adjustments, Allowance for Doubtful Accounts has a debit balance of
$250. The firm estimates its losses from uncollectible accounts to be one-half of 1 percent of net credit sales. The entry to record the estimated losses from uncollectible accounts will include a credit to Allowance for Doubtful Accounts for

A)$1,775.
B)$2,025.
C)$1,525.
D)$3,550.

Question 38

A firm reported sales of $300,000 for the year and Accounts Receivable has a balance of $20,000 at year-end. Prior to adjustment, Allowance for Doubtful Accounts has a credit balance of $300. The firm estimated its losses from uncollectible accounts to be one-half of 1 percent of sales. The entry to record the estimated losses from uncollectible accounts will include a credit to Allowance for Doubtful Accounts for

A)$1,500.
B)$1,200.
C)$3,000.
D)$1,800.

Question 39

On December 31, prior to adjustments, the balance of Accounts Receivable is $22,000 and Allowance for Doubtful Accounts has a credit balance of $135. The firm estimates its losses from uncollectible accounts to be 4% of accounts receivable at the end of the year. The adjusting entry needed to record the estimated losses from uncollectible accounts is

A)$135.
B)$1,015.
C)$745.
D)$880.

Question 40

A firm reported sales of $720,000 for the year and Accounts Receivable has a balance of $40,000 at year-end. Prior to adjustment, Allowance for Doubtful Accounts has a credit balance of $300. The firm estimated its losses from uncollectible accounts to be one-half of 1 percent of sales. The entry to record the estimated losses from uncollectible accounts will include a credit to Allowance for Doubtful Accounts for

A)$3,900.
B)$3,600.
C)$7,200.
D)$3,300.

Question 41

On December 31, 2019, prior to adjustments, Accounts Receivable has a debit balance of $370,000 and the Allowance for Doubtful Accounts has a credit balance of $800. The firm estimates its losses from uncollectible accounts to be 3% of accounts receivable at the end of the year. The amount of the adjusting entry needed to record the estimated losses from uncollectible accounts is

A)$10,300
B)$11,900
C)$12,700
D)$11,100

Question 42

Uncollectible Accounts Expense is classified as

A)a Contra Asset on the Balance Sheet.
B)a Liability on the Balance Sheet.
C)a Contra Expense on the Income Statement.
D)an Expense on the Income Statement.

Question 43

Common internal controls for accounts receivable would not include:

A)obtaining proper authorization for write-offs.
B)sending invoices and monthly statements to customers.
C)allowing all sales personnel to charge-off any accounts deemed uncollectible.
D)developing procedures that ensure that all credit sales are recorded and customers' account are debited.

Question 44

On December 31, prior to adjustments, the balance of Accounts Receivable is $56,000 and Allowance for Doubtful Accounts has a debit balance of $1,200. The firm estimates its losses from uncollectible accounts to be 4% of accounts receivable at the end of the year. The adjusting entry needed to record the estimated losses from uncollectible accounts is

A)$1,200.
B)$2,240.
C)$3,440.
D)$1,040.

Question 45

On December 31, 2019, prior to adjustments, Accounts Receivable has a debit balance of $256,000 and the Allowance for Doubtful Accounts has a credit balance of $1,600. The firm estimates its losses from uncollectible accounts to be 5% of accounts receivable at the end of the year. The balance in the Allowance for Doubtful Accounts after the adjusting entry for the estimated losses from uncollectible accounts is:

A)$12,800
B)$12,100
C)$11,200
D)$14,400

Question 46

When the allowance method of recognizing losses from uncollectible accounts is used, the entry to record the write-off of a specific account consists of a debit to

A)Accounts Receivable and a credit to Allowance for Doubtful Accounts.
B)Uncollectible Accounts Expense and a credit to Accounts Receivable.
C)Allowance for Doubtful Accounts and a credit to Accounts Receivable.
D)Uncollectible Accounts Expense and a credit to Allowance for Doubtful Accounts.

Question 47

If the direct charge-off method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer's account as uncollectible?

A)Accounts Receivable
B)Allowance for Doubtful Accounts
C)Uncollectible Accounts Expense
D)Uncollectible Accounts Payable

Question 48

On December 31, 2019, prior to adjustments, the Allowance for Doubtful Accounts has a debit balance of $750. An aging of the accounts receivable produces an estimate of $6,500 of probable losses from uncollectible accounts.

-The adjusting entry needed to record the estimated losses from uncollectible accounts includes a:

A)a credit to Allowance for Doubtful Accounts for $7,250
B)a debit to Uncollectible Accounts Expense for $5,750
C)a debit to Uncollectible Accounts Expense for $6,500
D)a credit to Allowance for Doubtful Accounts for $6,500

Question 49

A firm using the allowance method to provide for losses from uncollectible accounts collected the cash due from a customer whose account was previously written off. The entry to reinstate the customer's account included a credit to

A)Accounts Receivable.
B)Sales.
C)Uncollectible Accounts Expense.
D)Allowance for Doubtful Accounts.

Question 50

Allowance for Doubtful Accounts has a credit balance of $3,600 immediately before the write-off of a $750 account receivable. The balance of Allowance for Doubtful Accounts immediately after the write-off is

A)$750 debit.
B)$2,850 credit.
C)$4,350 credit.
D)$2,850 debit.

Question 51

Millie's Draperies uses the allowance method of recording bad debts. On June 13, the $200 account balance of Jane Murphy was written off as uncollectible. However, on August 5, Murphy paid $80 of the amount previously written off. The entry to reinstate Jane Murphy's account would include:

A)debit Cash $80; credit Uncollectible Accounts Expense $80
B)debit Accounts Receivable $200; credit Allowance for Doubtful Accounts $200
C)debit Allowance for Doubtful Accounts $80; credit Cash $80
D)debit Accounts Receivable $80; credit Allowance for Doubtful Accounts $80

Question 52

Nigel Lighting uses the direct charge-off method of recording bad debts. On September 4, the company concluded that the $300 account balance of Louis Blue should be charged off. The entry to write off Blue's account will be:

A)

B)

C)

D)

Question 53

Allowance for Doubtful Accounts has a credit balance of $1,000 immediately before the write-off of a $300 account receivable. The balance of Allowance for Doubtful Accounts immediately after the write-off is

A)$1,300 credit.
B)$700 credit.
C)$300 debit.
D)$700 debit.

Question 54

Millie's Draperies uses the allowance method of recording bad debts. On June 13, the company concluded that the $200 account balance of Jane Murphy should be written off as uncollectible. The entry to write off Murphy's account will be:

A)

B)

C)

D)

Question 55

On December 31, 2019, prior to adjustments, Accounts Receivable has a debit balance of $256,000 and the Allowance for Doubtful Accounts has a credit balance of $1,600. The firm estimates its losses from uncollectible accounts to be 5% of accounts receivable at the end of the year. The amount of the adjusting entry needed to record the estimated losses from uncollectible accounts is:

A)$12,800
B)$14,400
C)$12,100
D)$11,200

Question 56

On December 31, 2019, prior to adjustments, Accounts Receivable has a debit balance of $256,000 and the Allowance for Doubtful Accounts has a debit balance of $1,600. The firm estimates its losses from uncollectible accounts to be 5% of accounts receivable at the end of the year. The amount of the adjusting entry needed to record the estimated losses from uncollectible accounts is:

A)$12,800
B)$12,100
C)$14,400
D)$11,200

Question 57

On December 31, prior to adjustments, the balance of Accounts Receivable is $28,000 and Allowance for Doubtful Accounts has a debit balance of $200. The firm estimates its losses from uncollectible accounts to be 5.5% of accounts receivable at the end of the year. The balance is Allowance for Doubtful Accounts after adjustment is

A)$1,740.
B)$1,340.
C)$200.
D)$1,540.

Question 58

When a firm uses the allowance method to provide for losses for uncollectible accounts, the collection of an account previously written off as uncollectible requires an entry to

A)decrease the balance of the Allowance for Doubtful Accounts.
B)reduce the balance of Uncollectible Accounts Expense.
C)increase the balance of the Sales account.
D)reinstate the account receivable.

Question 59

Nigel Lighting uses the direct charge-off method of recording bad debts. On Sept. 4, the $300 account balance of Louis Blue was charged off. However, on November 15, Blue paid $70 of the amount previously written off. The entry to record the payment from Blue would include:

A)debit Accounts Receivable $300; credit Uncollectible Account Expense $300
B)debit Cash $70; credit Accounts Receivable $70
C)debit Allowance for Doubtful Accounts $70; credit Accounts Receivable $70
D)debit Uncollectible Account Expense $70; credit Cash $70

Question 60

On December 31, 2019, prior to adjustments, Accounts Receivable has a debit balance of $370,000 and the Allowance for Doubtful Accounts has a credit balance of $800. The firm estimates its losses from uncollectible accounts to be 3% of accounts receivable at the end of the year. The amount to be reported as Uncollectible Accounts Expense on the income statement for the year ending December 31, 2019, is

A)$10,300
B)$12,700
C)$11,100
D)$11,900

Question 61

The practice of estimating losses from uncollectible accounts before specific accounts become uncollectible is referred to as the ________ method.

Question 62

The estimated loss from uncollectible accounts can be based on the net credit sales for the year or the balance at the end of the year.

Question 63

The longer an account is past due, the ________ likely it is to be collected.

Question 64

At the end of 2019, the trial balance of Bryant Paint Store included the accounts and balances shown below. Credit sales were $145,000. Returns and allowances on these sales were $2,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 0.3 percent of net credit sales.
Accounts Receivable $ 18,000 Dr. Allowance for Doubtful Accounts 500 Dr.
1. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts for 2019??
2. What is the amount to be reported as Uncollectible Accounts Expense on the income statement for the year ended December 31, 2019?

Question 65

At the end of the current year, the trial balance of Carlton's Auto Sales included the accounts and balances shown below. Credit sales were $9,200,000. Returns and allowances on these sales were
$55,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 0.3 percent of net credit sales.
Accounts Receivable $ 1,300,000 Dr. Allowance for Doubtful Accounts 9,000 Cr.
Sales 14,000,000 Cr.
Sales Returns and Allowances 110,000 Dr.
1. What is the estimated loss from uncollectible accounts for the current year?
2. What is the balance in the Allowance for Doubtful Accounts after adjustment?

Question 66

At the end of the current year, the trial balance of Daniels' Furniture Store included the accounts and balances shown below. Credit sales were $180,000. Returns and allowances on these sales were
$2,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 0.4 percent of net credit sales.

1. What is the estimated loss from uncollectible accounts for the current year?
2. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts?

Question 67

The entry to record the write-off of a specific uncollectible account using the allowance method includes a debit to ________.

Question 68

The adjusting entry to record estimated losses from uncollectible accounts includes a(n)credit to the ________ account.

Question 69

When using the allowance method for accounting for uncollectible accounts, it takes ________ entries to record the collection of an account that was previously written off.

Question 70

At the end of the current year, the trial balance of Kerry Hardware included the accounts and balances shown below. Credit sales were $7,560,000. Returns and allowances on these sales were
$62,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 0.4 percent of net credit sales.
Accounts Receivable $ 590,000 Dr.
Allowance for Doubtful Accounts 3,700 Cr.
1. What is the estimated loss from uncollectible accounts for the current year?
2. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts?

Question 71

At the end of the current year, the trial balance of Tracey's Consulting Services included the accounts and balances shown below. Credit sales were $90,000. Returns and allowances on these sales were
$1,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 0.4 percent of net credit sales.

1. What is the estimated loss from uncollectible accounts for the current year?
2. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts?

Question 72

After the adjusting entry is made to record the estimate of losses from uncollectible accounts, Allowance for Doubtful Accounts should have a(n) ________balance.

Question 73

At the end of the current year, the trial balance of Diane's Dress Shop included the accounts and balances shown below. Credit sales were $9,200,000. Returns and allowances on these sales were
$55,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on .6 percent of net credit sales.
Accounts Receivable $ 1,300,000 Dr. Allowance for Doubtful Accounts 9,000 Cr.
1. What is the estimated loss from uncollectible accounts for the current year?
2. What is the amount of the balance in the Allowance for Doubtful Accounts after adjustment?

Question 74

At the end of the current year, the trial balance of Cary's Craft Shop included the accounts and balances shown below. Credit sales were $290,000. Returns and allowances on these sales were
$4,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 0.3 percent of net credit sales.
Accounts Receivable $ 36,000 Dr. Allowance for Doubtful Accounts 1,000 Dr.
1. What is the estimated loss from uncollectible accounts for the current year?
2. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts?

Question 75

Allowance for Doubtful Accounts has a debit balance of $700 at the end of the year, before adjustments. Sales for the year amounted to $920,000, sales discounts amounted to $31,200 and sales returns and allowances amounted to $42,300.

- If the uncollectible accounts expense is estimated at 2% of net sales, the amount of the adjusting entry to record the estimated losses from uncollectible accounts will be

A)$16,930
B)$16,230
C)$18,400
D)$17,630

Question 76

Allowance for Doubtful Accounts has a debit balance of $700 at the end of the year, before adjustments. Sales for the year amounted to $920,000, sales discounts amounted to $31,200 and sales returns and allowances amounted to $42,300.

-If the uncollectible accounts expense is estimated at 2% of net sales, the balance in the Allowance for Doubtful Accounts after the entry to record estimated losses from uncollectible accounts will be

A)$17,630
B)$16,230
C)$18,400
D)$16,930

Question 77

Allowance for Doubtful Accounts has a credit balance of $1,100 at the end of the year, before adjustments. Sales for the year amounted to $760,000, sales discounts amounted to $12,000 and sales returns and allowances amounted to $36,000. If the uncollectible accounts expense is estimated at 2% of net sales, the amount of the adjusting entry to record the estimated losses from uncollectible accounts will be

A)$15,200
B)$14,240
C)$15,340
D)$13,140

Question 78

At the end of the current year, the trial balance of Monique's Fashion Industries included the accounts and balances shown below. Credit sales were $6,400,000. Returns and allowances on these
sales were $57,200. Assume that the firm bases its estimate of the loss from uncollectible accounts on
0.3 percent of net credit sales.
Accounts Receivable $ 650,000 Dr. Allowance for Doubtful Accounts 4,500 Cr.
Sales 7,000,000 Cr.
Sales Returns and Allowances 55,000 Dr.
1. What is the estimated loss from uncollectible accounts for the current year?
2. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts? (Round your answers to the nearest dollar.)

Question 79

A procedure that groups accounts receivable according to the length of time they have been outstanding is called ________ the accounts receivable.

Question 80

On December 31, 2019, prior to adjustments, the Allowance for Doubtful Accounts has a debit balance of $750. An aging of the accounts receivable produces an estimate of $6,500 of probable losses from uncollectible accounts.

-The balance in the Allowance for Doubtful Accounts after the entry to record estimated losses from uncollectible accounts will be:

A)a credit of $5,750
B)a credit of $7,250
C)a credit of $6,500
D)a debit of $6,500