Kyrie Has Filed a Wrongful Termination Suit Alleging Bad Faith

question 51

Multiple Choice

Kyrie has filed a wrongful termination suit alleging bad faith on the part of her former employer of nine years.At the time of her dismissal from her law clerk position,Kyrie earned $52 000 annually and fringe benefits of $100 per month.What damage award has Kyrie's lawyer suggested could be awarded under the labour standards legislation in these circumstances?

• A) $11 200
• B) $32 800
• C) $44 800
• D) $98 400

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Definitions:

Bad Debts Expense

An expense reported on the income statement, representing the amount of accounts receivable that is not expected to be collected.

Accounts Receivable Turnover

A measure of how efficiently a company collects cash from credit sales, calculated as sales divided by the average accounts receivable.

Net Sales

The revenue generated from the sale of goods and services, after deducting returns, allowances for damaged goods, and discounts.

Allowance for Doubtful Accounts

A contra asset account that represents an estimate of the receivables that may not be collected, reducing the net value of accounts receivable.