The Accounts Receivable Clerk Had Prepared the Following Aging of Northumberland

question 16

Multiple Choice

The accounts receivable clerk had prepared the following aging of Northumberland Corp's accounts receivable.The current balance in the allowance for uncollectibles is $9,800 DR.What is the bad debt expense for the year? $\begin{array}{lrc}\text { Age since due }&\text { Amount }&\text { \% uncollectible }\\\hline0-30 \text { days } & \$ 500,000 & 1 \% \\30-60 \text { days } & 200,000 & 4 \% \\\text { over } 60 \text { days } & 100,000 & 10 \% \\\text { Total } & \$ 800,000 & 5 \% \text { (average) }\end{array}$

• A)$13,200
• B)$23,000
• C)$32,800
• D)$40,000

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Definitions:

Firm's Output

The total quantity of goods or services produced by a firm within a given period.

Shutdown Point

The level of output and price at which a company does not profit but can cover its variable costs in the short run, beyond which it would cease operations.

Firm's Output

The total quantity of goods or services produced by a business within a specific period.

Short-Run Supply

The quantity of goods and services that producers are willing and able to offer for sale at different prices over a short period, during which at least one input is fixed.