Reference no: EM132730718

Problem 1. An aging of a company's accounts receivable indicates that $11,000 is estimated to be uncollectible. If the Allowance for Doubtful Accounts has a $1,600 debit balance (before adjustment), the adjusting entry to record bad debts expense for the period will require a:

(a) Debit to Bad Debts Expense for $12,600
(b) Debit to Bad Debts Expense for $11,000
(c) Debit to Bad Debts Expense for $9,400
(d) Credit to Allowance for Doubtful Accounts for $11,000

Problem 2. The carrying amount (i.e. NRV) of Accounts Receivable is $19,000 before the write off of a $2,500 uncollectible accounts receivable. What is the carrying amount after the write off?

(a) $21,500
(b) $19,000
(c) $16,500
(d) Some other amount