At the Beginning of 2017, Cyrus Corp

question 26

Multiple Choice

At the beginning of 2017, Cyrus Corp.'s allowance for doubtful accounts is $12,500.
During 2017, $4,250 was written off as uncollectible. At December 31, the company used an aging schedule of accounts receivable and determined that $10,530 of the accounts receivable would probably be uncollectible. What would be the bad debt expense that should be reported on Cyrus's 2017 income statement?

• A)$5,720
• B)$26,780
• C)$2,280
• D)$18,280

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Definitions:

Spreading Activation

A theory in cognitive science suggesting that thoughts and ideas in memory are connected; activation of one concept triggers nearby or related concepts.

Visuospatial Sketchpad

A rehearsal system that holds and analyzes visual and spatial information.

Phonological Loop

A component of working memory model that deals with auditory information, holding and rehearsing speech-based information.

Atkinson and Shiffrin Model

A model of memory proposed by Richard Atkinson and Richard Shiffrin that describes how information flows through three stages: sensory memory, short-term memory, and long-term memory.