The ADA has the below table regarding its account receivable:   Age of Accounts Balance, June 30 Estimated Percentage Uncollectible 1-30 days $130,000 2.00% 31-60 days 70,000 5.00% 61-90 days 32,500 20.00% Over 90 days 3,000 50.00% If the opening balance of Allowance for Doubtful accounts is $7,050, the entries to record estimated uncollectible receivables this year will be: Select one: a. Bad debt expense $7,050                          Allowance for doubtful accounts $7,050 b. Allowance for doubtful accounts $14,100                          Account receivable $14,100 c. Bad debt expense $14,100                          Allowance for doubtful accounts $14,100 d. Account receivable $7,100                          Bad debt expense $7,100

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The ADA has the below table regarding its account receivable:

 

Age of Accounts

Balance, June 30

Estimated Percentage Uncollectible

1-30 days

$130,000

2.00%

31-60 days

70,000

5.00%

61-90 days

32,500

20.00%

Over 90 days

3,000

50.00%


If the opening balance of Allowance for Doubtful accounts is $7,050, the entries to record estimated uncollectible receivables this year will be:
Select one:
a. Bad debt expense $7,050
                         Allowance for doubtful accounts $7,050
b. Allowance for doubtful accounts $14,100
                         Account receivable $14,100
c. Bad debt expense $14,100
                         Allowance for doubtful accounts $14,100
d. Account receivable $7,100
                         Bad debt expense $7,100
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