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Yuck
Oct 20, 2008, 03:22 PM
Does this means that you have allowance for actual doubtful accounts?
Such as a 25,000 (credit) to offset the accounts that are proven uncollectable.

Ok, Here is my question! My homework question! I am only asking for feedback not asking anyone to answer the question itself.

Scott Co. reported allowance for doubtful accounts of $25,000(credit) at December 31, before preforming an aging of accounts receivable. As a result of the aging. Scott determed that an estimated $35,000 of the December 31 accounts receivable would prove uncollectable. What would be the adjusting entry required at December 31?

Here is the answers at bottom but I am going to provide my own answer also.

A. Doubtful Accounts Expense $35,000
Allowance for Doubtful Accounts $35,000

B. Doubtful Accounts Expense $35,000
Accounts Receivable $35,000

C. Allowance for Doubtful Account $10,000
Doubtful Accounts Expense $10,000

D. Doubtful Accounts Exoense $10,000
Allowance for Doubtful Accounts $10,000

My answer is D because I offsite the 25,000 from the 35,000 and received 10,000.

This is why I asked the very first question at top.
Do anyone think am on track?

hamzashakaa
Oct 20, 2008, 11:30 PM
Yes you are right.

Yuck
Oct 21, 2008, 11:18 AM
Yes you are right.

Thanks for your help!

muslimrao
Nov 3, 2008, 05:07 AM
Ya brother.

Your abv answer is right!