Asked by Richard Cutshaw on May 04, 2024
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The allowance method of estimating uncollectible accounts receivable based on an analysis of receivables shows that $640 of accounts receivable are uncollectible. Allowance for Doubtful Accounts has a debit balance of $110. The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of
A) $110
B) $640
C) $530
D) $750
Allowance for Doubtful Accounts
A contra-asset account on the balance sheet, estimating the amount of receivables that are expected to be uncollectible.
Uncollectible Accounts Receivable
Debts owed to a company that are considered unlikely to be recovered, often due to the debtor's inability to pay.
Debit Balance
An accounting entry that represents a situation where debits are greater than credits in an account, often indicating assets or expenses.
- Calculate the forecasted uncollectible accounts using analysis of receivables and the percentage of sales method.
- Transcribe the actions for surmising, revising, and relinquishing uncollectible accounts receivable in accountancy logs.
Verified Answer
Learning Objectives
- Calculate the forecasted uncollectible accounts using analysis of receivables and the percentage of sales method.
- Transcribe the actions for surmising, revising, and relinquishing uncollectible accounts receivable in accountancy logs.
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