The bookkeeper at Kupertino Company is recording information into the accounting system to recognise the estimated amount of bad debt expense for the fiscal period. This entry into the accounting system will affect which of the account balances below? Allowance
For Doubtful Debts Bad Debts Expense
A) Yes Yes
B) Yes No
C) No Yes
D) No No

Question

Quizplus · Accepted Answer

Recording the estimated amount of bad debt expense affects both the Allowance for Doubtful Debts and the Bad Debts Expense accounts. The Allowance for Doubtful Debts is increased to reflect the estimated uncollectible amounts, and the Bad Debts Expense is recorded to recognize the expense in the income statement.

The Bookkeeper at Kupertino Company Is Recording Information into the Accounting