A Company Ages Its Accounts Receivables to Determine Its End

question 137

Multiple Choice

A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $15,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $175. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

• A) \(\begin{array}{|c|c|c|}
• \hline \text { Bad Debt Expense } & 15,750 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 15,750 \\
• \hline
• \end{array}\)
• B) \(\begin{array}{|c|c|c|}
• \hline \text { Bad Debt Expense } & 15,575 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 15,575 \\
• \hline
• \end{array}\)
• C) \(\begin{array}{|c|r|r|}
• \hline \text { Bad Debt Expense } & 15,925 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 15,925 \\
• \hline
• \end{array}\)
• D) \(\begin{array}{|l|r|r|}
• \hline \text { Accounts Receivable } & 15,750 & \\
• \hline \text { Bad Debt Expense } & 175 & \\
• \hline \text { Sales } & & 15,925 \\
• \hline
• \end{array}\)
• E) \(\begin{array}{|c|r|r|}
• \hline \text { Accounts Receivable } & 15,925 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 15,925 \\
• \hline
• \end{array}\)

Comprehend the significance of cultural psychology and how it differs from traditional psychology in understanding social behavior.

Distinguish between 'emic' and 'etic' approaches in cultural and cross-cultural psychology.

Grasp the impact of cultural differences on psychological processes, including cognitive dissonance and social identification.

Understand the concepts of the ultimate attribution error and fundamental attribution errors in social psychology.

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Definitions:

Inductive Reasoning

The process of arriving at general conclusions from specific observations.

Controlled Experiment

A scientific test in which only one variable is changed at a time to isolate and measure its effect accurately.

Real-Life Effects

Actual impacts or outcomes that occur in everyday life, outside of controlled or experimental settings.

Sociologists

Social scientists who study human societies, their interactions, and the processes that preserve and change them, including cultural norms, organizations, and institutions.