Smithson Corporation's Unadjusted Trial Balance Includes the Following Balances (Assume $\quad\quad\quad\quad\quad \$ 1,119,000$

question 200

Multiple Choice

Smithson Corporation's unadjusted trial balance includes the following balances (assume normal balances) : Accounts Receivable $\quad\quad\quad\quad\quad \$ 1,119,000$
Allowances for Doubtful Accounts $\quad \$ 21,300$ Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt expense will the company record?

• A)$67,140
• B)$45,840
• C)$44,562
• D)$68,418

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Definitions:

Age Group

A classification of people based on their age, often used in demographics and marketing.

Number of Days

Often refers to the time period used in finance and accounting to calculate interest, production times, or deadlines.

Balance Sheet Approach

A method focusing on a company's balance sheet to assess its financial condition by analyzing assets, liabilities, and equity at a specific point in time.

Allowance Account

A contra-asset account used to estimate future uncollectible debts from customers, reducing the total amount of outstanding receivables.