At the beginning of the year, the balance in the allowance for doubtful accounts is a credit of $760. during the year, $120 of previously written-off accounts were reinstated and accounts totaling $740 are written-off as uncollectible. the end of the year balance (before adjustment) in the allowance for doubtful accounts should bea. $760b. $120c. $140

Option C) $140

Explanation:

When the company anticipate its losses the entry is:

Bad Debts Expense - $760 - Debit

                                  Allowance for Doubtful Accounts - $760 - Credit

When the accounts were written-off:

Allowance for Doubtful Accounts   $740 - Debit

                                   Accounts Receivable - $740 - Credit

Allowance for Doubtful Accounts Balance $ 20

When the previously written-off accounts were reinstated

Accounts Receivable - $120 - Debit

                                  Allowance for Doubtful Accounts - $120 - Credit

Balance at the end of the year in the Allowance for Doubtful Accounts $140.

im thinking a but im not 100% sure

explanation: