Dude Ranch Circle Estimates Its Uncollectible Accounts at 1

question 3

Multiple Choice

Dude Ranch Circle estimates its uncollectible accounts at 1.5% of its credit sales of $825,000. When adjusting for estimated losses from uncollectible accounts, the debit to Bad Debt Expense is

• A) $82,500.
• B) $123,750.
• C) $12,375.
• D) $8,250.

---

Definitions:

Conversion Disorder

A mental health condition where a person has blindness, paralysis, or other nervous system symptoms that cannot be explained by medical evaluation.

Compulsive

Pertaining to behavior performed persistently and repetitively without rational motivation, often to the detriment of the individual's well-being.

Obsessive

Characterized by persistent, intrusive, and unwanted thoughts or behaviors that are difficult to suppress or ignore.

Phobic

Pertaining to an irrational and excessive fear of a particular object, situation, or activity.