Ask Question
19 February, 22:29

At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $760. During the year, previously written off accounts of $120 are reinstated and accounts totaling $740 are written off as uncollectible. The end-of-year balance (before adjustment) in Allowance for Doubtful Accounts should be: (A) $760 (B) $120 (C) $140 (D) $740

+4
Answers (1)
  1. 20 February, 01:15
    0
    (C) $140

    Explanation:

    The computation of the end year balance before adjustment is shown below:

    = Opening balance of allowance for doubtful debts + reinstated previously written off accounts - uncollectible amount

    = $760 + $120 - $740

    = $140

    For computing the end year balance we add the previously written off amount and minus the uncollectible amount to the opening balance of the allowance for doubtful accounts

    Hence, option c is correct.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $760. During the year, previously written off ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers