The Allowance for Doubtful Debts account has a balance at the start of the year of $2,000.
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Question:
The Allowance for Doubtful Debts account has a balance at the start of the year of $2,000. At the end of the year debts of $500, are to be written off and the Allowance for Doubtful Debts is to be adjusted to 10% of the closing Accounts Receivable balance of $25,000. The amount for Bad and Doubtful Debts Expense appearing in the Income statement for the year will be:
Select one:
a. $1,500
b. $1,000
c. $500
d. $4,000
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
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