Prior to the year-end adjustments of accounts, an entity's Allowance for Doubtful Accounts has a debit balance resulting from a significant amount of accounts receivable that was written off. Based on aging of the receivables and the entity's experience of the extent of uncollectibles, an amount was determined as the required credit balance in Allowance for Doubtful Accounts at year-end. Which of the following statements is true relating to the above-described situation? a. Doubtful accounts expense is equal to the amount determined by aging and analysis of the receivables. b. Doubtful accounts expense is the total amount determined by aging and analysis of the receivables plus the allowance balance before adjustment. c. Doubtful accounts expense is the amount determined by
Prior to the year-end adjustments of accounts, an entity's Allowance for Doubtful Accounts has a debit balance resulting from a significant amount of accounts receivable that was written off. Based on aging of the receivables and the entity's experience of the extent of uncollectibles, an amount was determined as the required credit balance in Allowance for Doubtful Accounts at year-end. Which of the following statements is true relating to the above-described situation? a. Doubtful accounts expense is equal to the amount determined by aging and analysis of the receivables. b. Doubtful accounts expense is the total amount determined by aging and analysis of the receivables plus the allowance balance before adjustment. c. Doubtful accounts expense is the amount determined by
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter14: Accounting For Uncollectible Accounts Receivable
Section14.1: Uncollectible Accounts Receivable
Problem 1OYO
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34.Prior to the year-end adjustments of accounts, an entity's Allowance for Doubtful Accounts has a debit balance resulting from a significant amount of accounts receivable that was written off. Based on aging of the receivables and the entity's experience of the extent of uncollectibles, an amount was determined as the required credit balance in Allowance for Doubtful Accounts at year-end.
Which of the following statements is true relating to the above-described situation?
Which of the following statements is true relating to the above-described situation?
a. Doubtful accounts expense is equal to the amount determined by aging and analysis of the receivables.
b. Doubtful accounts expense is the total amount determined by aging and analysis of the receivables plus the allowance balance before adjustment.
c. Doubtful accounts expense is the amount determined by aging and analysis of the receivables less the allowance balance before adjustment.
d. Doubtful accounts expense amount cannot be determined.
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