The beginning credit balance in the allowance for doubtful accounts is $12,656 and the ending credit balance is $14,348.If bad debt expense was $3,879,which of the following statements is true?
A)The allowance account was retroactively debited $2,187 for additional bad debts that became apparent in a future time period.
B)The allowance account was debited $2,187 for write-offs of actual bad debts.
C)The allowance account was credited $2,187 for recoveries of bad debts.
D)The allowance account was credited $2,187 for the difference between the percent of credit sales method and the aging of accounts receivable methoD.

Question

The beginning credit balance in the allowance for doubtful accounts is $12,656 and the ending credit balance is $14,348.If bad debt expense was $3,879,which of the following statements is true?
A)The allowance account was retroactively debited $2,187 for additional bad debts that became apparent in a future time period. 
B)The allowance account was debited $2,187 for write-offs of actual bad debts. 
C)The allowance account was credited $2,187 for recoveries of bad debts. 
D)The allowance account was credited $2,187 for the difference between the percent of credit sales method and the aging of accounts receivable methoD.

Quizplus · Accepted Answer

The Answer of The beginning credit balance in the allowance for doubtful accounts is $12,656 and the ending credit balance is $14,348.If bad debt expense was $3,879,which of the following statements is true?
A)The allowance account was retroactively debited $2,187 for additional bad debts that became apparent in a future time period. 
B)The allowance account was debited $2,187 for write-offs of actual bad debts. 
C)The allowance account was credited $2,187 for recoveries of bad debts. 
D)The allowance account was credited $2,187 for the difference between the percent of credit sales method and the aging of accounts receivable methoD.

The Beginning Credit Balance in the Allowance for Doubtful Accounts