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.

---

Definitions:

Salmon

A species of fish commonly found in both fresh and saltwater, highly valued for its taste and nutritional benefits.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors, using fewer resources.

Programs

Structured plans or initiatives designed to achieve certain goals or outcomes, often referring to software in computing contexts.

Sunglasses

Protective eyewear designed to prevent bright sunlight from damaging or discomforting the eyes.