The dollar amount for the adjusting entry referred to in item 1 could be considered:
A. the actual amount of bad debts expense incurred in the previous period.
B. the total of the accounts actually written off this period.
C. an estimate of the accounts likely to become uncollectible in the near future.
D. the cash paid out to collection agencies to put pressure on non-paying customers.
Answer:C
The dollar amount for the adjusting entry referred to in item 1 could be considered:
A. the actual amount of bad debts expense incurred in the previous period. B. the total of the accounts actually written off this period. C. an estimate of the accounts likely to become uncollectible in the near future. D. the cash paid out to collection agencies to put pressure on non-paying customers.