80.2K

Verified Solution

Link Copied!

7. A company uses the allowance method to account for uncollectible accounts. In a year, the following transactions occurred: The account of a client for 1.000 TL was deemed to be uncollectible and is written off as a bad debt. Received 1.000 TL cash from that client whose account had previously been written off as uncollectible. Suppose that the beginning debit balance of Accounts Receivable was 132.000 TL and the beginning credit balance of Allowance for Doubtful Accounts was 1.900 TL. It is estimated that bad debts will be 5% of accounts receivable. What would be the adjustment to record bad debts for the end of the period? a) debit to Bad Debt Expense for 8.450 TL b) debit to Allowance for Doubtful Accounts for 3.650 TL c) debit to Bad Debt Expense for 3.650 TL d) credit to Allowance for Doubtful Accounts for 8.450 TL.

7. A company uses the allowance method to account for uncollectible accounts. In a year, the following transactions occurred: - The account of a client for 1.000 TL was deemed to be uncollectible and is written off as a bad debt. - Received 1.000 TL cash from that client whose account had previously been written off as uncollectible. Suppose that the beginning debit balance of Accounts Receivable was 132.000TL and the beginning credit balance of Allowance for Doubtful Accounts was 1.900TL. It is estimated that bad debts will be 5% of accounts receivable. What would be the adjustment to record bad debts for the end of the period? a) debit to Bad Debt Expense for 8.450TL b) debit to Allowance for Doubtful Accounts for 3.650TL c) debit to Bad Debt Expense for 3.650TL d) credit to Allowance for Doubtful Accounts for 8.450TL

Answer & Explanation Solved by verified expert

See Answer