Transit Corporation Estimates Uncollectible Accounts Using a Percentage of Outstanding

question 5

Multiple Choice

Transit Corporation estimates uncollectible accounts using a percentage of outstanding accounts receivable.After the year-end adjustment for bad debt expense was made, the company's records reflected the following information (in 000's) : $\begin{array}{ll}\text { Accounts written off } & \$ 1,600 \\\text { Collection on accounts previously written off } & 300 \\\text { Allowance for uncollectible accounts at Januady } 1 & 1,700 \\\text { Accountsreceivable at December } 31 & 100,000 \\\text { Bad debt percentage } & 1.5 \%\end{array}$ The bad debt expense for the year was

• A)$1, 100
• B)$1, 400
• C)$1, 500
• D)$3, 000

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Definitions:

Layoffs

The termination of employees, often due to economic downturns, organizational restructuring, or cost-cutting measures.

Unfair Labour Practices

Actions by employers or unions that violate employee rights or labor laws, such as discrimination, harassment, or coercion.

Discriminating

Making distinctions or choices based on existing biases or preferences, often unfairly.

Trade Union Membership

The state of being part of an organized group of workers who have joined together to achieve common goals such as better working conditions.