Scott Co. reported an allowance for doubtful accounts of $28,000 (credit) at December 31, 2011, before performing an aging of accounts receivable. As a result of the aging, Scott determined that an estimated $27,000 of the December 31, 2011, accounts receivable would prove uncollectible. The adjusting entry required at December 31, 2011, would be
A) Doubtful Accounts Expense ........... 27,000 Allowance for Doubtful Accounts ... 27,000
B) Doubtful Accounts Expense ........... 27,000 Accounts Receivable ............... 27,000
C) Allowance for Doubtful Accounts ..... 1,000 Doubtful Accounts Expense ......... 1,000
D) Doubtful Accounts Expense ........... 1,000 Allowance for Doubtful Accounts ... 1,000

Question

Quizplus · Accepted Answer

The Answer of Scott Co. reported an allowance for doubtful accounts of $28,000 (credit) at December 31, 2011, before performing an aging of accounts receivable. As a result of the aging, Scott determined that an estimated $27,000 of the December 31, 2011, accounts receivable would prove uncollectible. The adjusting entry required at December 31, 2011, would be
A) Doubtful Accounts Expense ........... 27,000 Allowance for Doubtful Accounts ... 27,000
B) Doubtful Accounts Expense ........... 27,000 Accounts Receivable ............... 27,000
C) Allowance for Doubtful Accounts ..... 1,000 Doubtful Accounts Expense ......... 1,000
D) Doubtful Accounts Expense ........... 1,000 Allowance for Doubtful Accounts ... 1,000

Scott Co Reported an Allowance for Doubtful Accounts of $28,000 (Credit)