The balance of the Allowance for Doubtful Accounts was $12,656 at the beginning of the...

80.2K

Verified Solution

Question

Accounting

The balance of the Allowance for Doubtful Accounts was $12,656 at the beginning of the year and $14,348 at the end of the year. Bad Debt Expense was $3,879 for the year. Recoveries in the amount of $100 were recorded during the year. Which of the following statements is correct?

A) The Allowance for Doubtful Accounts was debited for $2,287 to record write-offs during the year.

B) The Allowance for Doubtful Accounts was retroactively debited for $2,187 to record additional bad debts that became apparent in a future time period.

C) The Allowance for Doubtful Accounts account was credited $2,187 for the difference between the percent of credit sales method and the aging of accounts receivable method.

D) The Allowance for Doubtful Accounts account was credited $2,287 for payments from customer whose account balances were previously written off.

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