Reference no: EM131266421
On January 1, Year4 the Accounts Receivable and the Allowance for Doubtful Accounts carried NORMAL balances of $30,000 and $500, respectively.
(The 30,000 is a positive asset and the 500 is a negative asset.)
During the year the company reported $70,000 of credit sales.
There were $550 of receivables written-off as uncollectible in Year4.
Cash collections of receivables amounted to $74,550.
The company recorded $700 of bad debt expense for Year4.
What will be the ADJUSTED balance in the allowance for uncollectible accounts at the end of Year4?
A. $550 normal balance [credit balance]
B. $650 normal balance [credit balance]
C. $50 normal balance [credit balance]
D. $700 normal balance [credit balance]
E. $1200 normal balance [credit balance]
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