Craigmont Uses the Allowance Method to Account for Uncollectible Accounts

question 76

Multiple Choice

Craigmont uses the allowance method to account for uncollectible accounts.Its year-end unadjusted trial balance shows Accounts Receivable of $104,500,allowance for doubtful accounts of $665 (credit) and sales of $925,000.If uncollectible accounts are estimated to be 4% of accounts receivable,what is the amount of the bad debts expense adjusting entry?

• A)$4,845
• B)$4,180
• C)$3,515
• D)$3,700
• E)$3,850

Recognize financial management practices and their implications for nonprofit effectiveness.

Understand the concepts and strategies behind political coalition building, specifically within immigrant and civil rights movements.

Grasp the significance and function of controlling images in perpetuating systemic racism and their role as strategies of action.

Comprehend the origins and impact of the DREAM movement and related immigration reform efforts.

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Definitions:

Capitalised

Expenses or costs that are added to the cost basis of a fixed asset on a company's balance sheet, rather than being expensed immediately.

Extrusion System

A process used in manufacturing to create objects of a fixed cross-sectional profile by pushing material through a die of the desired cross-section.

Financial Year

A one-year period that companies use for accounting purposes and preparation of financial statements, which may or may not align with the calendar year.

Expensed

Costs or expenditures that are immediately charged against earnings in the period in which they are incurred, rather than being capitalized or deferred.