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Team Shirts Had an Unadjusted Balance in Its Allowance for Uncollectible

Question 49

Multiple Choice

Team Shirts had an unadjusted balance in its Allowance for uncollectible accounts of $(875) on August 31.This amount was "left over" at the end of August because not as many accounts were written off as previously anticipated.An aging of accounts receivable at August 31 revealed an estimate of $1,000 for uncollectible accounts.Using the accounts receivable allowance method,bad debts expense for August should be:


A) $125.
B) $275
C) $1,000.
D) $1,875.

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