The Unadjusted Trial Balance at Year-End for a Company That

question 59

Multiple Choice

The unadjusted trial balance at year-end for a company that uses the percent of receivables method to determine its bad debts expense reports the following selected amounts: All sales are made on credit.Based on past experience,the company estimates 3.5% of ending account receivable to be uncollectible.What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

• A)Debit Bad Debts Expense $13,975; credit Allowance for Doubtful Accounts $13,975.
• B)Debit Bad Debts Expense $15,225; credit Allowance for Doubtful Accounts $15,225.
• C)Debit Bad Debts Expense $16,475; credit Allowance for Doubtful Accounts $16,475.
• D)Debit Bad Debts Expense $7,350; credit Allowance for Doubtful Accounts $7,350.
• E)Debit Bad Debts Expense $17,350; credit Allowance for Doubtful Accounts $17,350.

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Definitions:

Job Satisfaction

The extent to which individuals feel fulfilled, content, and happy with their jobs, influencing their motivation, performance, and retention.

Extensive Mechanization

The widespread application of machinery and automation to increase production and efficiency.

Deskilling Of Work

The reduction in the complexity of work tasks, typically due to automation or the simplification of jobs, resulting in a decreased demand for skilled labor.

Labor History

The study of the development, organization, and movements of working-class groups and labor unions, often in the context of economic, social, and political changes.