using the aging of accounts receivable, Age Old, Inc. estimates that $90000 of its 4000000 of accounts receivable will be uncoll
ectible. Prior to making its adjusting entry, the unadjusted allowance for doutfull accounts has a credit balance of 1000. After the adjustment, Bad Debt Expense on the income statement will be _____ the allowance for doubtful accounts on the balance sheet
Bad debts expense is affiliated to a firms' current asset accounts receivable. It is also regarded as the uncollectible or doubtful accounts expense. Bad debts expense arises due to inability of customers to pay for goods or services that was purchased on credit.
The allowance for doubtful accounts on the balance sheet will be $90,000
Explanation: In simple words, loan refers to lending of money by one entity or a group of entities to some other party. The individual or organisation taking the loan have to repay it in installments in a specified period. The installment repaid is a sum of principal and the interest charged.
In the given case, Lois borrowed money from a bank and is liable to repay that loan within a specified time period.
Hence from the above we can conclude that the correct option is B.
A traditional list of immediate "basic needs" is food (including water), shelter and clothing. Many modern lists emphasize the minimum level of consumption of 'basic needs' of not just food, water, clothing and shelter, but also sanitation, education, and healthcare.
