Blackrock, Inc.'s "allowance for doubtful accounts" had a balance of $8,900 at the beginning of 2020. During the year, the company "wrote-off" $5,400 of accounts receivable as uncollectible and there were no bad debt recoveries. Based on an analysis of receivables outstanding at December 31, 2020, Blackrock's accountant determined that the "allowance for doubtful accounts" should have an ending balance of $9,400. What adjusting journal entry is required? Select one: Bad Debt Expense a. 5,900 Allowance for Doubtful Accounts 5,900 Bad Debt Expense b. 5,400 Allowance for Doubtful Accounts 5,400 Allowance for Doubtful Accounts C. 5,400 Bad Debt Expense 5,400 Allowance for Doubtful Accounts d. 5,900 Bad Debt Expense 5,900

Blackrock, Inc.'s "allowance for doubtful accounts" had a balance of $8,900 at the beginning of 2020. During the year, the company "wrote-off" $5,400 of accounts receivable as uncollectible and there were no bad debt recoveries. Based on an analysis of receivables outstanding at December 31, 2020, Blackrock's accountant determined that the "allowance for doubtful accounts" should have an ending balance of $9,400. What adjusting journal entry is required? Select one: Bad Debt Expense a. 5,900 Allowance for Doubtful Accounts 5,900 Bad Debt Expense b. 5,400 Allowance for Doubtful Accounts 5,400 Allowance for Doubtful Accounts C. 5,400 Bad Debt Expense 5,400 Allowance for Doubtful Accounts d. 5,900 Bad Debt Expense 5,900

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...

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