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Tanning Company analyzes its receivables to estimate uncollectible accounts. The accounts receivable balance is $368,000 and credit sales are $1,000,000. An aging of accounts receivable estimates that $29,440 of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment? a. Account Debit Credit Bad Debt Expense 29,440   Allowance for Doubtful Accounts   29,440  b. Account Debit Credit Bad Debt Expense 27,440   Allowance for Doubtful Accounts   27,440  c. Account Debit Credit Bad Debt Expense 94,320   Allowance for Doubtful Accounts   94,320  d. Account Debit Credit Bad Debt Expense 31,440   Allowance for Doubtful Accounts   31,440

Tanning Company analyzes its receivables to estimate uncollectible accounts. The accounts receivable balance is $368,000 and credit sales are $1,000,000. An aging of accounts receivable estimates that $29,440 of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment? a. Account Debit Credit Bad Debt Expense 29,440   Allowance for Doubtful Accounts   29,440  b. Account Debit Credit Bad Debt Expense 27,440   Allowance for Doubtful Accounts   27,440  c. Account Debit Credit Bad Debt Expense 94,320   Allowance for Doubtful Accounts   94,320  d. Account Debit Credit Bad Debt Expense 31,440   Allowance for Doubtful Accounts   31,440

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...
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Tanning Company analyzes its receivables to estimate uncollectible accounts. The accounts receivable balance is $368,000 and credit sales are $1,000,000. An aging of accounts receivable estimates that $29,440 of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment?

a.
Account Debit Credit
Bad Debt Expense 29,440  
Allowance for Doubtful Accounts   29,440 
b.
Account Debit Credit
Bad Debt Expense 27,440  
Allowance for Doubtful Accounts   27,440 
c.
Account Debit Credit
Bad Debt Expense 94,320  
Allowance for Doubtful Accounts   94,320 
d.
Account Debit Credit
Bad Debt Expense 31,440  
Allowance for Doubtful Accounts   31,440 
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