Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. at the beginning of 20x1, pagach corp.'s "allowanc

At the beginning of 20X1, Pagach Corp.'s "Allowance for Uncollectible Accounts" had a ...

90.2K

Verified Solution

Question

Accounting

At the beginning of 20X1, Pagach Corp.'s "Allowance for Uncollectible Accounts" had a
credit balance of $9,000.
During 20X1, account receivable balances totaling $12,000 were specifically written-off
as being uncollectible.
As a result of the above, which of the following statements is true immediately after
these specific write-offs?
Select one:
a. The "Allowance for Uncollectible Accounts" account has a credit balance of
$21,000 which implies that last year's estimate of bad debts was
underestimated (too low).
b. The "Allowance for Uncollectible Accounts" account has a debit balance of
$3,000 which implies that last year's estimate of bad debts was overestimated
(too high).
c. The "Allowance for Uncollectible Accounts" account has a debit balance of
$3,000 which implies that last year's estimate of bad debts was
underestimated (too low).
d. The "Allowance for Uncollectible Accounts" account has a credit balance of
$21,000 which implies that last year's estimate of bad debts was
overestimated (too high).
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students