After Aging the Accounts Receivable, It Is Estimated That $700

question 67

Multiple Choice

After aging the accounts receivable, it is estimated that $700 will not be collected and the allowance account has an existing credit balance of $100. The adjusting entry under the aging approach would be for the amount of

• A) $100.
• B) $600.
• C) $700.
• D) $800.

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Definitions:

Fixed Cost

A constant expense that does not change with the level of production or sales.

Total Revenues

The complete amount of income generated by a company or organization before any expenses are deducted.

Average Total Cost

The total cost of production divided by the number of units produced, representing the average cost per unit.

Marginal Cost

The uptick in complete expenditure resulting from the creation of one more unit of a product or service.