1) Sustainable Supplies prepares the following aging of receivables analysis: Accounts receivable Percent uncollectible $840. Total $ 57,600 Days Past Due Current 1 to 30 $ $ 40,000 9,000 1% 3% 31 to 61 to Over 90 60 90 $ $ 3,600 2,000 5% 8% $ 3,000 Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $500 credit. 11% A) Debit Bad Debts Expense $840; credit Allowance for Doubtful Accounts B) Debit Allowance for Doubtful Accounts $840; credit Bad Debts Expense $840. C) Debit Bad Debts Expense $1,840; credit Allowance for Doubtful Accounts $1,840. D) Debit Allowance for Doubtful Accounts $1,840; credit Bad Debts Expense $1,840. E) Debit Bad Debts Expense $1,340; credit Allowance for Doubtful Accounts $1,340.

1) Sustainable Supplies prepares the following aging of receivables analysis: Accounts receivable Percent uncollectible $840. Total $ 57,600 Days Past Due Current 1 to 30 $ $ 40,000 9,000 1% 3% 31 to 61 to Over 90 60 90 $ $ 3,600 2,000 5% 8% $ 3,000 Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $500 credit. 11% A) Debit Bad Debts Expense $840; credit Allowance for Doubtful Accounts B) Debit Allowance for Doubtful Accounts $840; credit Bad Debts Expense $840. C) Debit Bad Debts Expense $1,840; credit Allowance for Doubtful Accounts $1,840. D) Debit Allowance for Doubtful Accounts $1,840; credit Bad Debts Expense $1,840. E) Debit Bad Debts Expense $1,340; credit Allowance for Doubtful Accounts $1,340.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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