Clark Company Estimated the Net Realizable Value of Its Accounts

question 67

Multiple Choice

Clark Company estimated the net realizable value of its accounts receivable as of December 31, 2014, to be $165,000, based on an aging schedule of accounts receivable. Clark has also provided the following information: • The accounts receivable balance on December 31, 2014 was $175,000.
• Uncollectible accounts receivable written-off during 2014 totaled $12,000.
• The allowance for doubtful accounts balance on January 1, 2014 was $15,000.
How much is Clark's 2014 bad debt expense?

• A) $10,000.
• B) $7,000.
• C)$13,000.
• D)$3,000.

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Definitions:

Severity

The extent of harm or damage that can be caused by an event or condition, often used in the context of diseases or natural disasters.

Per Person Expenditures

The average amount of money spent by or on behalf of an individual, often used in contexts such as healthcare, education, and public services.

Health Care

The maintenance or improvement of health via the prevention, diagnosis, treatment, recovery, or cure of illness, injury, and other physical and mental impairments in people.

Brown V. Board

Reference to the landmark 1954 U.S. Supreme Court decision, Brown v. Board of Education, that declared state laws establishing separate public schools for black and white students to be unconstitutional.