Flyer Company Has Provided the Following Information Prior to Any

question 2

Multiple Choice

Flyer Company has provided the following information prior to any year-end bad debt adjustment: • Cash sales,$150,000
• Credit sales,$450,000
• Selling and administrative expenses,$110,000
• Sales returns and allowances,$30,000
• Gross profit,$490,000
• Accounts receivable,$110,000
• Sales discounts,$14,000
• Allowance for doubtful accounts credit balance,$1,200
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Flyer prepares an aging of accounts receivable and the result shows that 5% of accounts receivable is estimated to be uncollectible.What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?

• A)$5,500.
• B)$6,700.
• C)$4,240.
• D)$4,300.

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Definitions:

Skinner

B.F. Skinner, an American psychologist known for his work in developing the theory of operant conditioning, emphasizing the role of reinforcements in shaping behavior.

Reinforcement

A process in behavioral psychology where a behavior increases in frequency because it is followed by a rewarding stimulus.

Antecedent

Anything that occurs before a behavior that may trigger or cause a certain behavior to occur, often used in the analysis of behavior patterns.

Consequence

The result or effect of an action or condition, often seen in terms of how it affects an earlier event.