Using the Percentage of Receivables Method for Recording Bad Debt

question 32

Multiple Choice

Using the percentage of receivables method for recording bad debt expense, estimated uncollectible accounts are $14,000. If the balance of the Allowance for Doubtful Accounts is $2,000 debit before adjustment, what is the amount of bad debt expense?

• A) $2,000
• B) $12,000
• C) $14,000
• D) $16,000

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Definitions:

Mixers

Devices used to blend or mix ingredients together in cooking or in beverage preparation; also refers to non-alcoholic beverages mixed with alcoholic drinks.

Cakes

Baked goods made from ingredients such as flour, sugar, and eggs, often sweet and served as dessert or for special occasions.

Average Total Cost

The total cost per unit of output, found by dividing the total cost by the quantity of output.

Mixers

Devices or machines used to combine ingredients together into a homogeneous mixture.