Following the Completion of an Aging Analysis, the Accountant for Liberty

question 53

Multiple Choice

Following the completion of an aging analysis, the accountant for Liberty estimated that $1,100 of the receivables would be uncollectible. The year-end adjusting entry to record bad debt expense would include which of the following?

• A) Credit to allowance for doubtful accounts of $1,100.
• B) Debit to bad debt expense of $1,000.
• C) Debit to bad debt expense of $900.
• D) Credit to allowance for doubtful accounts of $1,200.

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Definitions:

Prototype

An abstract representation of an idealized member of a class of objects or events.

Exemplar

A specific instance, example, or case that is representative of a concept, category, or phenomenon.

Schema

An organized framework for representing knowledge that typically includes characters, plots, and settings and incorporates both general knowledge about the world and information about particular events. See also script and story grammar.

Classical

Often referring to classical conditioning, a learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.