A Company Has a Debit Balance of $3,500 in the Allowance

question 95

Multiple Choice

A company has a debit balance of $3,500 in the Allowance for Doubtful Accounts.It estimates that 2% of net credit sales of $1,500,000 will be uncollectible.The required journal entry to record bad debt expense should include a debit to:

• A)Allowance for Doubtful Accounts for $30,000.
• B)Allowance for Doubtful Accounts for $33,500.
• C)Bad Debt Expense for $33,500.
• D)Bad Debt Expense for $30,000.

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Definitions:

CS

In the context of classical conditioning, CS stands for Conditioned Stimulus, which is a neutral stimulus that, after being repeatedly paired with an unconditioned stimulus, begins to evoke a conditioned response.

Discrimination

The unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or sex.

Classical Conditioning

A teaching method that employs the repetitive pairing of two stimuli; over time, the response initially caused by the second stimulus becomes caused by the first stimulus alone.

CS

An abbreviation that can stand for "Conditioning Stimulus" in behavioral psychology, relating to the process by which a neutral stimulus becomes associated with a reflexive response.