A Company Has $90,000 in Outstanding Accounts Receivable and It

question 49

Multiple Choice

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 debit.The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:

• A)$3,600
• B)$3,568
• C)$3,632
• D)$2,800
• E)$4,400

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Definitions:

Intermittently

Occurring at irregular intervals; not continuous or steady, often with pauses or breaks in between.

Variable Ratio

A reinforcement schedule where a response is rewarded after an unpredictable number of responses, making it a powerful method for conditioning stable and high rates of responding.

Reinforcement

In operant conditioning, a consequence that will strengthen an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Responses

Reactions or behaviors produced by an organism in response to a specific stimulus or situation.