Ask Question
11 August, 02:01

An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $4,937.

If Allowance for Doubtful Accounts has a $1,250 credit balance, the adjustment to record the bad debt expense for the period will require a:

a. debit to Bad Debt Expense for $4,937.

b. debit to Allowance for Doubtful Accounts for $3,687.

c. debit to Bad Debt Expense for $3,687.

d. credit to Allowance for Doubtful Accounts for $4,937.

+3
Answers (1)
  1. 11 August, 02:25
    0
    c. debit to Bad Debt Expense for $3,687.

    Explanation:

    The journal entry to record the bad debt expense is shown below:

    Bad debt expense A/c Dr $3,687

    To Allowance for doubtful debts $3,687

    (Being bad debt expense is recorded)

    The computation is shown below:

    = Estimation of the uncollectible receivable - credit balance in allowance for doubtful debts

    = $4,937 - $1,250

    = $3,687
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $4,937. If Allowance for Doubtful ...” 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