Upon Completing an Aging Analysis of Accounts Receivable,the Accountant for Rosco

question 26

Multiple Choice

Upon completing an aging analysis of accounts receivable,the accountant for Rosco Works prepared an aging of accounts receivable and estimated that $5,000 of the $98,000 accounts receivable balance would be uncollectible.The allowance for doubtful accounts had a $400 debit balance at year-end prior to adjustment.What is the amount of bad debt expense?

• A)$5,000.
• B)$5,400.
• C)$4,600.
• D)$400.

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Definitions:

International Trade

involves the exchange of goods and services across international borders or territories.

Import/Export

The exchange of goods, services, and capital between different countries or territories, enhancing global economic interdependence.

Total Surplus

The sum of consumer and producer surplus, representing the total benefit to society from the production and consumption of goods and services.

Consumer Surplus

The contrast between what consumers can and will pay for a good or service and their actual expenditure on it.