Marston Company Has Outstanding Accounts Receivable Totaling €1

question 6

Multiple Choice

Marston Company has outstanding accounts receivable totaling €1.5 million as of December 31 and sales on credit during the year of €24 million. There is also a credit balance of €2,000 in the allowance for doubtful accounts as of December 31. After aging its receivables, the company estimates that 8% of its total outstanding receivables will be uncollectible. What will be the amount of bad debt expense recognized for the year?

• A) €2,000
• B) €120,000
• C) €122,000
• D) €118,000

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Definitions:

Restraining Forces

Elements that hinder or limit the progress towards change or a desired outcome.

Incongruent Organizational Systems

Systems within an organization that do not align or match with its goals, strategies, or structure, leading to inefficiencies or conflicts.

Learning Interventions

Educational or training activities designed to improve performance, knowledge, skills, or attitudes in organizational contexts.

Resistance

Opposition or reluctance to accept change or new ideas, often due to comfort with existing conditions or fear of the unknown.