At the Start of 20x4, Colonial Designs' Allowance for Uncollectibles

Multiple Choice

At the start of 20x4, Colonial Designs' Allowance for Uncollectibles balance is €120,000.During 20x4, Colonial Designs' credit sales were €5,000,000; of this amount, it expected 2% will become uncollectible.During 20x4, Colonial Designs wrote off €70,000 of accounts receivable.At the end of 20x4, Colonial Designs estimates, based on an aging of accounts, that the ending balance in the Allowance for Uncollectibles should be €130,000.

A) Allowance for Uncollectibles .................... 80,000
Accounts Receivable, net .........................80,000
B) Bad Debt Expense ............................ 70,000
Accounts Receivable, net .......................... 70,000
C) Allowance for Uncollectibles ..................... 70,000
Bad Debt Expense...........................70,000
D) Bad Debt Expense ........................... 80,000
Allowance for Uncollectibles ......................... 80,000
E) Allowance for Uncollectibles ..................... 80,000
Accounts Receivable, gross.....................80,000