A Company Has $90,000 in Outstanding Accounts Receivable and It

question 43

Multiple Choice

A company has $90,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts.Experience suggests that 4% of outstanding receivables are uncollectible.The current balance (before adjustments) in the allowance for doubtful accounts is an $800 credit.The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:

• A)$2,800
• B)$3,568
• C)$3,632
• D)$3,600
• E)$4,400

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Definitions:

XIO Instruction

stands for "Examine if Off" in programmable logic controllers (PLC), used to check if a specific condition or input is false or not present.

Physical Input

A hardware interface through which real-world data is received by a system or device.

Input Voltage

The electrical potential difference provided to the input terminals of a device, necessary for its operation.