A company has $90,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is an $800 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:
A. $3,568
B. $4,400
C. $3,600
D. $3,632
E. $2,800
Answer: E
You might also like to view...
Which of the following statements is true?
a. Salaried employees are always exempt from FLSA, but wage earners are not; b. An independent contractor is an employee of more than one company; c. To determine the hourly rate of a salaried employee, it is necessary to annualize the monthly salary first; d. A withholding allowance determines the amount to be withheld for FICA; e. When accounting for wages, the Wages and Salaries Expense account should be debited for the net pay
Scanning your memory for previous experiences with products or brands is called
A. cognitive dissonance. B. internal search. C. problem recognition. D. external search. E. alternative evaluation.
Give an example of the most basic level of product, the core benefit
What will be an ideal response?
Which of the following is not a specific power of voters to participate directly in state government?
a. the appointment of judges b. the direct initiative c. the referendum petition d. the recall petition