Question 19 2.5 pts

Using the aging method, estimated uncollectible accounts are $3,000. If the balance in the Allowance for Doubtful Accounts is a $600 debit before adjustment, what is the Bad Debts Expense adjustment for the period?

$3,600

$600

$3,000

$2,400

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Question 20 2.5 pts

At December 31, 201X, Brooke's Horse Stable unadjusted Allowance for Doubtful Accounts showed a credit balance of $432. An aging of the Accounts Receivable indicates probable uncollectible accounts of $1,000. The year-end adjusting entry for Bad Debts Expense:

includes a credit to the Allowance account for $568.

includes a credit to the Allowance account for $1,432.

includes a debit to the Allowance account for $42.

includes a debit to the Allowance account for $822.

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Question 21 2.5 pts

Which method uses an aging of Accounts Receivable to calculate the Bad Debts Expense?

Aging the Accounts Receivable approach

Balance sheet approach

Direct write-off

Income statement approach

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Question 22 2.5 pts

Harry's Hardware estimates that approximately $1.75 out of every $100 of credit sales proves to be uncollectible. Harry calculates Bad Debts Expense using the:

aging the Accounts Receivable approach.

direct write-off method.

balance sheet approach.

income statement approach.