At Year-End, Chief Company Has a Balance of $10,000 in Accounts

question 46

Multiple Choice

At year-end, Chief Company has a balance of $10,000 in accounts receivable of which $1,000 is more than 30 days overdue. Chief has a credit balance of $100 in the allowance for doubtful accounts before any year-end adjustments. Chief estimates that 1% of current accounts and 10% of accounts over thirty days are uncollectible. How much is bad debt expense?

• A) $90.
• B) $190.
• C)$290.
• D)$100.

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Definitions:

Early Childhood Experiences

Influential events and interactions during the early years of life that significantly shape an individual's development and personality.

Optimistic Thinking

A mindset characterized by a positive outlook on life, expecting good things to happen or situations to turn out well.

Seligman

A psychologist best known for his work on learned helplessness, positive psychology, and well-being.

Oedipus Complex

A Freudian theory referring to a child's feelings of desire for their opposite-sex parent and jealousy and rivalry with their same-sex parent.