Ask Question
11 November, 02:43

1. When the percent of uncollectible accounts on current accounts is 1% and the unadjusted balance in allowance for doubtful accounts is a credit of

$3,250, the entry for bad debt expense is a debit to bad debt expense for $

+2
Answers (1)
  1. 11 November, 03:01
    0
    Bad debt expense account will be debited with $3,250

    Explanation:

    It's the principle of double entry that for every debit you will have a credit.

    The allowance account is a credit (in effect it reduces your Account receivables by the doubtful debts or to use a business Analyst language it de-risks the Asset balance of the balance sheet)

    The Bad debt Account on the other hand is recognized as an expense. To project a realizable net income to our shareholders, because if the debts become uncollectible then our profits and shareholder values are at risk
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “1. When the percent of uncollectible accounts on current accounts is 1% and the unadjusted balance in allowance for doubtful accounts is a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers