FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
The ADA has the below table regarding its
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
Allowance for doubtful accounts $7,050
b. Allowance for doubtful accounts $14,100
Account receivable $14,100
Account receivable $14,100
c. Bad debt expense $14,100
Allowance for doubtful accounts $14,100
Allowance for doubtful accounts $14,100
d. Account receivable $7,100
Bad debt expense $7,100
Bad debt expense $7,100
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