Using the Percentage-Of-Receivables Basis, the Uncollectible Accounts for the Year

question 142

Multiple Choice

Using the percentage-of-receivables basis, the uncollectible accounts for the year is estimated to be $38,000. If the balance for the Allowance for Doubtful Accounts is a $7,000 debit before adjustment, what is the amount of bad debt expense for the period?

• A) $7,000
• B) $31,000
• C) $38,000
• D) $45,000

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Definitions:

Peritoneal

Pertaining to the peritoneum.

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Various methods used to remove waste products and excess fluid from the blood when the kidneys are not functioning properly.

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Creatinine

A chemical waste molecule that is generated from muscle metabolism and is excreted in the urine; its level is a measure of kidney function.