Use the Following Information for Questions The Balance in Their Allowance for Doubtful Accounts Before Year-End

question 12

Multiple Choice

Use the following information for questions: $$\begin{array} { l c c } \text { Days outstanding } & \text { Balance } & \text { Estimated percentage uncollectible } \\0 - 30 \text { days } & \$ 350,000 & 1 \% \\31 - 60 \text { days } & 275,000 & 2 \% \\61 - 90 \text { days } & 67,500 & 5 \% \\ \text { over } 90 \text { days } & 37,500 & 25 \%\end{array}$$ The balance in their allowance for doubtful accounts before year-end adjustments is a $2,000 credit.
-The bad debt expense for 2011 is:

• A)$21,750
• B)$23,750.
• C)$19,750.
• D)$35,000.

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Definitions:

Highly Memorable

Easily or likely to be remembered due to being distinctly remarkable or impressive.

Claim Lives

A term often used to indicate that something (such as a disease, disaster, or conflict) has caused deaths.

Undramatically

In a manner that is not marked by or involving dramatic, exciting, or sensational elements.

Overconfidence

The phenomenon where an individual's subjective confidence in their judgments is reliably greater than their objective accuracy.