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Sidana [21]
3 years ago
6

Allowance for Doubtful Accounts has an unadjusted balance of $500 at the end of the year, and an analysis of accounts in the cus

tomers' ledger indicates doubtful accounts of $15,000. Compute the adjusted balance in the allowance for doubtful accounts?a.$15,000b.$14,500c.$14,000d.$15,500
Business
1 answer:
motikmotik3 years ago
7 0

Answer:

a.$15,000

Explanation:

To compute the adjusted balance in the allowance for doubtful accounts we have to find out the bad debt expense which is shown below:

= Allowance for Doubtful accounts - unadjusted balance

= $15,000 - $500

= $14,500

Now the adjusted balance would be

= Adjusted bad debt expense + unadjusted balance

= $14,500 + $500

= $15,000

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Assume (1) a predetermined overhead rate of $8.00 per machine-hour, (2) actual machine-hours worked during the period of 54,000
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