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strojnjashka [21]
3 years ago
12

Green Valley Steel had sales of $1,000,000 and collections of $760,000, leaving a balance of $240,000 in accounts receivable as

of December 31, 2021. Analysis indicates it expects to collect $200,000 of its accounts receivable. How would it set up an allowance for uncollectible accounts?
A. Debit accounts receivable for $40,000 and credit bad debts for $40,000
B. Debit bad debt expense for $40,000 and credit allowance for uncollectible accounts for $40,000
C. Debit allowance for uncollectible accounts for $40,000 and credit accounts receivable for $40,000
D. Debit allowance for uncollectible accounts for $40,000 and credit bad debts for $40,000
Business
1 answer:
sammy [17]3 years ago
8 0

Answer: d

Explanation:

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