An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $4,937.
If Allowance for Doubtful Accounts has a $1,250 credit balance, the adjustment to record the bad debt expense for the period will require a:

a. debit to Bad Debt Expense for $4,937.
b. debit to Allowance for Doubtful Accounts for $3,687.
c. debit to Bad Debt Expense for $3,687.
d. credit to Allowance for Doubtful Accounts for $4,937.

c. debit to Bad Debt Expense for $3,687.

Explanation:

The journal entry to record the bad debt expense is shown below:

Bad debt expense A/c Dr  $3,687

             To Allowance for doubtful debts $3,687

(Being bad debt expense is recorded)  

The computation is shown below:

= Estimation of the uncollectible receivable - credit balance in allowance for doubtful debts

= $4,937 - $1,250

= $3,687

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whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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