7.Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year (before adjustment), and bad debt expense is estimated at 4% of net credit sales. If net credit sales are $600,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts is
D. cannot be determined. That is what I picked.
11. Allowance for Doubtful Accounts is classified as a(n) ______ and has a normal ______ balance.
A.owners’ equity, credit
C.owners’ equity, debit
D.contra-asset, credit This is what I picked.