Holtzman Corporation Had a 1/1/07 Balance in the Allowance for Doubtful

question 60

Multiple Choice

Holtzman Corporation had a 1/1/07 balance in the Allowance for Doubtful Accounts of $10,000.During 2007, it wrote off $7,200 of accounts and collected $2,100 on accounts previously written off.The balance in Accounts Receivable was $200,000 at 1/1 and $240,000 at 12/31.At 12/31/07, Holtzman estimates that 5% of accounts receivable will prove to be uncollectible.What is Bad Debt Expense for 2007?

• A)$2,000.
• B)$7,100.
• C)$9,200.
• D)$12,000.

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Definitions:

Topographical Map

A type of map characterized by large-scale detail and quantitative representation of relief, usually using contour lines.

Indifference Map

A graphical representation showing different bundles of goods between which a consumer is indifferent.

Demand Curves

A graphical representation showing the relationship between the price of a good and the quantity of that good consumers are willing to buy.

Indifference Map

A graph showing a set of indifference curves, illustrating combinations of goods or services among which a consumer is indifferent.