Tines Commerce computes bad debt based on the allowance method. They determine their current year’s balance estimation to be a credit of $45,000. The previous period had a credit balance in Allowance for Doubtful Accounts of $12,000. What should be the reported figure in the adjusting entry for the current period? A. $12,000 B. $45,000 C. $33,000 D. $57,000

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Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
FindFind

Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

Solutions

Chapter 9, Problem 5MC
Textbook Problem

Tines Commerce computes bad debt based on the allowance method. They determine their current year’s balance estimation to be a credit of $45,000. The previous period had a credit balance in Allowance for Doubtful Accounts of $12,000. What should be the reported figure in the adjusting entry for the current period?

A. $12,000

B. $45,000

C. $33,000

D. $57,000

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Chapter 9 Solutions

Principles of Accounting Volume 1
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