Using the Following Information: During 2018, Sales on Account

question 168

Multiple Choice

Using the following information: During 2018, sales on account were $145,000 and collections on account were $100,000. Also during 2018, the company wrote off $4,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $40,000. Bad debt expense for 2018 is

• A) $4,000.
• B) $5,000.
• C) $9,000
• D) $40,000.

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Definitions:

Maximizing Profits

The process by which a firm adjusts its production to achieve the highest possible profit.

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