Your company previously averaged about 20% of its total accountsreceivable in the "over 90 days past due" category and now has 35% inthis category. All else equal, using the aging of accounts receivablemethod, the amount of the bad debt adjustment will:Select one:O a. fall, increasng the ending balance of the allowance account.b. rise, increasing the ending balance of the allowance account.c. fall, decreasing the ending balance of the allowance account.d. rise, increasing the ending balance of accounts receivable.

Your company previously averaged about 20% of its total accounts receivable in the "over 90 days past due" category and now has 35% in this category. All else equal, using the aging of accounts receivable method, the amount of the bad debt adjustment will: Select one: a. fall, increashhg the ending balance of the allowance account. O b. rise, increasing the ending balance of the allowance account. O c. fall, decreasing the ending balance of the allowance account.

Your company previously averaged about 20% of its total accounts receivable in the "over 90 days past due" category and now has 35% in this category. All else equal, using the aging of accounts receivable method, the amount of the bad debt adjustment will: Select one: a. fall, increashhg the ending balance of the allowance account. O b. rise, increasing the ending balance of the allowance account. O c. fall, decreasing the ending balance of the allowance account.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4PB: Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts...

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At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
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