Allowance for Doubtful Accounts
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?
