Wellington Corp

question 168

Multiple Choice

Wellington Corp. has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit during the year of $24 million. There is also a credit balance of $12,000 in the allowance for doubtful accounts. If the company estimates that 8% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year?

• A) $ 532,000.
• B) $ 520,000.
• C) $1,920,000.
• D) $ 508,000.

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Definitions:

Horizontal Gene Transfer

Transfer of genetic material between existing individuals.

Gene Exchange

The process by which genes are transferred from one genome to another through mechanisms such as transformation, conjugation, and transduction, or exchanged between chromosomes through recombination.

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A bacterium that causes cholera, a severe diarrheal illness, through contaminated water or food.

Helicobacter Pylori

A type of bacteria that infects the stomach lining and can cause ulcers and sometimes lead to stomach cancer.