11.Allowance for Doubtful Accounts has a debit balance of $600 at the end of the

Question

11.Allowance for Doubtful Accounts has a debit balance of $600 at the end of the year (before adjustment), and an analysis of accounts in the customer ledger indicates uncollectible receivables of $13,000. Which of the following entries records the proper adjusting entry for bad debt expense?

a.debit Bad Debt Expense, $12,400; credit Allowance for Doubtful Accounts, $12,400

b.debit Bad Debt Expense, $13,600; credit Allowance for Doubtful Accounts, $13,600

c.debit Allowance for Doubtful Accounts, $600; credit Bad Debt Expense, $600

d.debit Bad Debt Expense, $600; credit Allowance for Doubtful Accounts, $600

13.A 60-day, 9% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is

a.$10,900

b.$10,000

c.$10,150

d.$9,100

Explanation / Answer

11. Allowance for doubtful accounts showing a debit balance. so baddebt expense will be $13,000+$600 = $13,600

Journal entry is:

So answer is:  b.debit Bad Debt Expense, $13,600; credit Allowance for Doubtful Accounts, $13,600

13.

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