Seasons Hospital uses the allowance method to account for its uncollectible accounts. It has the following balances on December 31 before any adjusting entries: Accounts Receivable = $100,000 Allowance for Uncollectible Accounts = $1,000 (credit) The hospital estimates uncollectible accounts to be 25% of accounts receivable. What year-end adjustment (adjusting entry) should be made for uncollectible accounts? Multiple Choice Account Bad Debt Expense Allowance for Uncollectible Accounts Account Bad Debt Expense Allowance for Uncollectible Accounts Account Allowance for Uncollectible Accounts Bad Debt Expense Account Bad Debt Expense Accounts Receivable Debit 25,000 Debit 24,000 Debit 24,000 Debit 25,000 Credit 25,000 Credit 24,000 Credit 24,000 Credit 25,000

Seasons Hospital uses the allowance method to account for its uncollectible accounts. It has the following balances on December 31 before any adjusting entries: Accounts Receivable = $100,000 Allowance for Uncollectible Accounts = $1,000 (credit) The hospital estimates uncollectible accounts to be 25% of accounts receivable. What year-end adjustment (adjusting entry) should be made for uncollectible accounts? Multiple Choice Account Bad Debt Expense Allowance for Uncollectible Accounts Account Bad Debt Expense Allowance for Uncollectible Accounts Account Allowance for Uncollectible Accounts Bad Debt Expense Account Bad Debt Expense Accounts Receivable Debit 25,000 Debit 24,000 Debit 24,000 Debit 25,000 Credit 25,000 Credit 24,000 Credit 24,000 Credit 25,000

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section: Chapter Questions

Problem 1AP

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