At the end of the current year, using the aging of accounts receivable method, management estimated that $23,750 of the accounts receivablebalance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $455. Whatadjusting entry should the company make at the end of the current year to record its estimated bad debts expense?Multiple ChoiceBad Debts Expense23,295Allowance for Doubtful Accounts23,295ОAccounts Receivable24,205Allowance for Doubtful Accounts24,205ОBad Debts Expense24,205Allowance for Doubtful Accounts24,205Bad Debts ExpenseAllowance for Doubtful AccountsAccounts ReceivableBad Debts Expense23,75023,75023,750455 Bad Debts ExpenseAllowance for Doubtful Accounts23,29523,295Accounts Receivable24,205Allowance for Doubtful Accounts24,205Bad Debts Expense24,205Allowance for Doubtful Accounts24,205Bad Debts ExpenseAllowance for Doubtful AccountsAccounts ReceivableBad Debts ExpenseSales23,75023,75023,75045524,205

Step 1: Required allowance for bad debts If you use the aging of account receivables method, the 3%…

Answered: At the end of the current year, using…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 31RQSC

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Question 7
8- Under allowance method,the journal entry to record uncollectible accounts expense is a. Dr. Allowance for Doubtful Accounts and Cr. Bad debts Expense b. Dr. Bad debts expense and Cr. Accounts Receivable c. Dr. Accounts Receivable and Cr. Bad debts expense d. Dr. Bad debts expense and Cr. Allowance for Doubtful Accounts
Which accounting concept supports recording bad debt expense before accounts are actually uncollectible? a) Full disclosure principle b) Materiality concept c) Going concern concept d) Matching principle
All bad debts balances should be removed from accounts receivable balances when they are determined to be uncollectible True o false
None
When the allowance method of recognizing bad debt expense is used, the allowance for doubtful accounts would decrease when Account previously written off is collected Specific uncollectible account is written off Specific account receivable is collected Account previously written off becomes collectible
The initial journal entry used to record the estimate for bad debt expense includes a (Select all answers that apply): O credit to Allowance for Uncollectible Accounts. O debit to Accounts Payable O debit to Allowance for Uncollectible Accounts. O debit to Bad Debt Expense. O credit to Accounts Receivable. O credit to Bad Debt Expense. O credit to Accounts Payable O debit to Accounts Receivable. ASUS f4 f5 E3 f6 f7 f8 f9 f10 f11 团 4. 8. T 因 6 近 86 图 %24
Please do not plagiarise it from websites thanku
What is the normal journal entry for recording bad debt expense under the allowance method? a. Debit Accounts Receivable, credit Allowance for Doubtful Accounts. 1. b. Debit Allowance for Doubtful Accounts, credit Bad Debt Expense. Debit Bad Debt Expense, credit Allowance for Doubtful Accounts. C. d. Debit Allowance for Doubtful Accounts, credit Accounts Receivable. Explain the answer you selected: 2. Under the allowance method of recognizing uncollectible accounts, the entry to write off an uncollectible account а. has no effect on net income b. decreases net income c. increases the allowance for uncollectible accounts d. has no effect on the allowance for uncollectible accounts Explain the answer you selected:
31
What is the normal journal entry for recording bad debt expense? Group of answer choices debit Accounts Receivable, credit Bad Debt Expense debit Bad Debt Expense, credit Allowance for Uncollectible Accounts debit Allowance for Uncollectible Accounts, credit Bad Debt Expense debit Bad Debt Expense, credit Accounts Receivable
(b) (c) (d) Allowance for Doubtful Accounts Accounts Receivable Cash Bad Debt Expense (To reinstate account previously written off) Bad Debt Expense Allowance for Doubtful Accounts (To record the recovery of the uncollectible account during the period) 6500 3300 6500 3300 00 00

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