On December 31 of the Current Year, TechCom's Unadjusted Trial

question 4

Multiple Choice

On December 31 of the current year, TechCom's unadjusted trial balance included the following items: Accounts Receivable, debit balance of $107,250; Allowance for Doubtful Accounts, credit balance of $1,900. What amount should be debited to Bad Debt Expense, assuming 6% of outstanding accounts receivable as of December 31 of the current year, are estimated to be uncollectible?

• A) $2,835
• B) $3,755
• C) $4,535
• D) $6,435
• E) $8,335

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Definitions:

Discount Coupons

Promotional vouchers that reduce the price of goods or services, often used to attract customers or boost sales.

High Quality

The degree to which a product or service meets or exceeds customer expectations.

High Price

An amount that is considerably above the average or standard cost of an item or service.

Price War

A competitive situation where rival companies continuously lower prices to undercut each other, aiming to increase market share.