Collision Corporation
Data for Collision Corporation for the Year $~~~~~~$

question 67

Multiple Choice

Collision Corporation
Data for Collision Corporation for the year ended December 31, 2012, are presented below.
Credit Sales $~~~~~~$ $\$ 2,000,000$
Sales retuns and allowances $~~~~~~$ 40,000
Accounts receivable (December 31, 2012) $~~~~~~$ 610,000
Allowance for bad debts
$~~$ (Before adjustment at December 31, 2012) $~~~~~~$ 15,000
Estimated amount of uncollected accounts based on aging analysis $~~~~~~$ 55,000
-Refer to the information provided for Collision Corporation. If Collision estimates its bad debts at 2% of net credit sales, what amount will be reported as bad debt expense for 2012?

• A) $40,000
• B) $39,200
• C) $24,200
• D) $25,000

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Definitions:

Project Manger

A professional responsible for planning, executing, and closing projects, ensuring they are completed on time, within budget, and to scope.

Legitimate Power

Authority that is recognized and accepted by others within an organizational structure.

Expert Power

The influence wielded by an individual or group due to their expertise, skills, or experience in a particular domain.

Referent Power

A form of influence derived from being admired, respected, or identified with, often because of personal attributes or associations.