The Soft Company Has Provided the Following Information After Year-End

question 50

Multiple Choice

The Soft Company has provided the following information after year-end adjustments: • Allowance for doubtful accounts was $11,000 at the beginning of the year and $30,000 at the end of the year.
• Accounts receivable were $80,000 at the beginning of the year and $420,000 at the end of the year.
• Accounts written off as uncollectible totaled $20,000.
• Net sales totaled $2,700,000.
• Sales discounts were $100,000.
How much was Soft's bad debt expense for the year?

• A) $39,000.
• B) $1,000.
• C)$19,000.
• D)$20,000.

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Definitions:

Required Return

The minimum return that investors expect or require from an investment to compensate for its risk.

Corporate Tax Rates

The rate at which businesses are taxed on their profits by the government, varying between countries and sometimes within jurisdictions based on company size or revenue.

Subjective Approach

A method of decision-making or valuation based on personal judgments and opinions rather than objective data.

Risk Classes

Categories of investments grouped together based on their similar level of risk.