At the end of its most recent accounting period, Hinch Corporation had a balance

Question

At the end of its most recent accounting period, Hinch Corporation had a balance of Accounts Receivable of $725,000 and a debit balance in Allowance for Uncollectible Accounts of $4,800. An aging of Accounts Receivable performed at the end of that period determined that the balance in Allowance for Uncollectible Accounts should be $31,400. The adjusting entry to record Bad Debts Expense should include which of the following: Debit to Bad Debts Expense of $26,600 Credit to Bad Debts Expense of $31,400 Debit to Bad Debts Expense of $36,200 Credit to Allowance for Uncollectible Accounts of $31,400 O

Explanation / Answer

C.Debit to Bad debts expense of $36,200.

the following will be the adjusting journal entry:

1 bad debt expense a/c $36,200 ................To Allowance for uncollectible accounts a/c 36,200 (amount = 31,400 desired balance + 4,800 existing debit balance =>$36,200)

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