Kennedy Company uses the balance sheet approach in estimating uncollectible accounts expense
The company prepares an adjusting entry to recognize this expense at the end of each month. During the month of July, the company wrote-off a $3,500 receivable and made no recoveries of previous write-offs. Following the adjusting entry for July, the credit balance in the Allowance for Doubtful Accounts was $3,000 larger than it was on July 1. What amount of uncollectible account expense was recorded for July?
A. $2,500.
B. $1,000.
C. $1,500.
D. $6,500.
D
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On November 1, 2017, President, Inc declared a dividend of $3
00 per share. President, Inc has 10,000 shares of common stock outstanding and 20,000 of preferred stock. The date of record is November 15, and the payment date is November 30, 2017. Regarding the date of record, which of the following statements is true? A) No journal entry is made on the date of record. B) The liability must be recorded on the date of record. C) Cash is disbursed to shareholders on the date of record. D) The company transfers cash to a brokerage firm on the date of record.
Al has opened a auto repair shop. The monthly payment on the tools he recently purchased, the rent on his business location, and his business license are all examples of what type of costs?
a. marginal b. fixed c. demand d. variable