multiple select question select all that apply delectable, inc.s unadjusted trial balance includes accounts…

multiple select question select all that apply delectable, inc.s unadjusted trial balance includes accounts receivable of $10,000; allowance for doubtful accounts of $50 credit balance; and sales revenue of $100,000 (all on credit). management estimates that 2% of credit sales will be uncollectible. delectables financial statements will show _______. (check all that apply.) bad debt expense of $2,000 allowance for doubtful accounts of $2,000 credit balance bad debt expense of $2,050 allowance for doubtful accounts of $2,050 credit balance

multiple select question select all that apply delectable, inc.s unadjusted trial balance includes accounts receivable of $10,000; allowance for doubtful accounts of $50 credit balance; and sales revenue of $100,000 (all on credit). management estimates that 2% of credit sales will be uncollectible. delectables financial statements will show _______. (check all that apply.) bad debt expense of $2,000 allowance for doubtful accounts of $2,000 credit balance bad debt expense of $2,050 allowance for doubtful accounts of $2,050 credit balance

Answer

Explanation:

Step1: Calculate bad - debt expense

The bad - debt expense is estimated as a percentage of credit sales. Credit sales are $100,000 and the estimated uncollectible percentage is 2%. So, Bad Debt Expense = Credit Sales × Estimated Uncollectible Percentage. Bad Debt Expense=$100,000\times0.02 = 2000$.

Step2: Calculate ending allowance for doubtful accounts

The allowance for doubtful accounts has a beginning credit balance of $50. After recording the bad - debt expense of $2000, the ending credit balance of the Allowance for Doubtful Accounts = Beginning Credit Balance+Bad Debt Expense. Ending Allowance for Doubtful Accounts = $50 + 2000=2050$.

Answer:

A. Bad Debt Expense of $2,000 D. Allowance for Doubtful Accounts of $2,050 credit balance