Using the Percentage-Of-Receivables Method for Recording Bad Debt Expense, Estimated

question 181

Multiple Choice

Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $55,000. If the balance of the Allowance for Doubtful Accounts is $11,000 debit before adjustment, what is the balance after adjustment?

• A)$55,000
• B)$11,000
• C)$66,000
• D)$44,000

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Definitions:

Marginal Utility

The additional satisfaction or benefit (utility) a consumer receives from consuming one additional unit of a good or service.

Price of Diamonds

The cost at which diamonds are sold or bought, influenced by several factors including quality, supply, and demand.

Price of Water

The cost assigned to water consumption, varying based on location, availability, and delivery methods.

Marginal Utility

The additional benefit or utility gained from consuming an extra unit of a good or service.