Ask Question
BusinessBusiness
28 May, 23:43

Deborah Company's account balances at December 31 for Accounts Receivable and Allowance for Doubtful Accounts were $2,100,000 and $35,000 (Cr.), respectively. An aging of accounts receivable indicated that $126,000 are expected to become uncollectible. The amount of the adjusting entry for bad debts at December 31 is

A. $210,000.

B. $126,000.

C. $91,000.

D. $161,000.

+5
Answers (1)
  1. 29 May, 03:14
    0
    The amount of the adjusting entry for bad debts at December 31 is C. $91,000

    Explanation:

    Adjustment entry is made on changes on the amount of provision for doubtful debts.

    Increase in amount of provision for doubtful debts increases the expenses in income statement.

    Decreases in amount of provision for doubtful debts decreases the expenses in income statement.

    Allowance for Doubtful Accounts Balance $35,000 (cr)

    Allowance during th year $126,000

    Increase in Allowance $ 91,000

    $ 91, 000 increase in allowance for doubtful debts increases the expenses in Income Statement
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Deborah Company's account balances at December 31 for Accounts Receivable and Allowance for Doubtful Accounts were $2,100,000 and $35,000 ...” 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
You Might be Interested in
A new storm drainage system must be constructed right away to reduce periodic flooding that occurs in a city that is in a valley.
Answers (1)
What is co-signing? A) requesting multiple credit histories B) opening two lines of credit at the same time C) sharing responsibility for a debt with another person D) allowing someone else to be completely responsible for your debt
Answers (1)
Which of the following statements is (are) false regarding cost allocations and product costing? (A) It is easier to determine the individual product cost for a manufacturer than it is for a wholesaler.
Answers (1)
When a woman died, a deed was found in her desk drawer. the deed had been signed, dated, and acknowledged but not recorded. the deed gave the woman's house to a local charity.
Answers (1)
In a large organization, an individual may be stifled and limited by a wide variety of factors. However, by owning one's own business, the only limits are one's own creativity, talent, and determination.
Answers (1)
New Questions in Business
Five jobs are waiting to be processed. Their processing times and due dates are given below. Using the shortestprocessing time dispatching rule, in which order should the jobs be processed?
Answers (1)
Acme Foods wants to make its chips saltier, but it doesn't want to spend more than it has to on salt. A sample of consumers are asked to compare its current chip (saltiness = 100) with saltier versions and to say whether the new version is saltier.
Answers (1)
Which of the following comparisons best isolates the impact of a change in activity on performance?
Answers (1)
If an investor anticipates an annual rental income from a leased property to be $400,000 dollars, this expected sum has a direct bearing on what the investor will pay for the property. This is an example of
Answers (1)
In comparison to industry averages, Okra Corp. has a low inventory turnover, a high current ratio, and an average quick ratio. Which of the following would be the most reasonable inference about Okra Corp.? A. Its current liabilities are too low. B.
Answers (2)
Home » Business » Deborah Company's account balances at December 31 for Accounts Receivable and Allowance for Doubtful Accounts were $2,100,000 and $35,000 (Cr.), respectively.
Sign Up Forgot Password?