Thompson Corporation's Unadjusted Trial Balance Includes the Following Balances (Assume $\quad \quad \quad \quad \quad \$ 1,865,000$

question 67

Multiple Choice

Thompson Corporation's unadjusted trial balance includes the following balances (assume normal balances) : - Accounts receivable $\quad \quad \quad \quad \quad \$ 1,865,000$
- Allowance for doubtful accounts $\quad \$ 35,500$ Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt expense will the company record?

• A)$119,400
• B)$76,400
• C)$74,270
• D)$114,030

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Definitions:

Exchange

A process where two parties come to a mutual agreement to trade goods, services, or information.

Supply Chain

The network of all the individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and to its eventual delivery to the end user.

Balance of Power

A situation in international relations where power is distributed among several nations to prevent any one from becoming too strong.

Availability of Information

Refers to how easy it is to access relevant data or knowledge needed for decision-making or other purposes.