Using the Following Information: During 2014, Sales on Account

question 70

Multiple Choice

Using the following information: During 2014, sales on account were €290,000 and collections on account were €172,000. Also during 2014, the company wrote off €16,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at €118,000. Bad debts expense for 2014 is

• A) €44,000.
• B) €28,000.
• C) €118,000
• D) €2,000.

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Definitions:

Well-structured Problem

A problem characterized by a clear goal, known solution paths, and definite criteria for evaluating solutions.

Uncertainty

A condition of limited knowledge where it is impossible to exactly describe existing states, future outcomes, or their probabilities.

Well-structured Problem

A problem that is clearly defined, with a clear path to the solution and known criteria for evaluating the solution.

Programmed Problem Solution

A predetermined method or procedure used to address problems that occur routinely within an organization.