The Following Information Is Related to December 31, 2016 Balances

question 57

Multiple Choice

The following information is related to December 31, 2016 balances. During 2017 sales on account were $390,000 and collections on account were $230,000. Also, during 2017 the company wrote off $22,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $144,000. Bad debt expense for 2017 is:

• A)$46,000.
• B)$24,000.
• C)$144,000.
• D)$ 2,000.

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Definitions:

Systematic Desensitization

A therapeutic intervention used to reduce fear or anxiety towards a specific object or situation by gradually exposing the patient to the anxiety-producing stimulus.

Flooding

A psychological therapy technique for treating phobias and other stress disorders where the person is exposed to a vast quantity of their source of fear all at once.

Feared Stimuli

Objects, scenarios, or situations that evoke a strong fear response in an individual.

Taijinkyofu-sho

A culturally specific syndrome in Japan characterized by an intense fear of offending others through one's body odor or appearance.