Question 6 1 point If the Kipness Company had a beginning ba

Question 6 (1 point) If the Kipness Company had a beginning balance in the allowance for doubtful accounts of $1,000 debit, and wrote off $2,000 in accounts during the year and prepared an adjusting journal entry to the allowance account for $15,000, what is the ending balance in the Allowance for Doubtful Accounts? a) $16,000 credit balance. b) $12,000 credit balance. c) $14,000 credit balance. $18 000 credit balance

Solution

Calculate ending balance in the allowance for doubtful accounts :

Ending balance in the allowance for doubtful accounts = 15000-3000 = 12000 credit balance

So answer is b) $12000 credit balance