Using the Percentage-Of-Receivables Basis, the Uncollectible Accounts for the Year

question 87

Multiple Choice

Using the percentage-of-receivables basis, the uncollectible accounts for the year is estimated to be $38,000. If the balance for the Allowance for Doubtful Accounts is a $7,000 credit before adjustment, what is the amount of bad debt expense for the period?

• A) $7,000
• B) $31,000
• C) $38,000
• D) $45,000

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Definitions:

World Hunger

A global condition characterized by chronic undernourishment and inadequate food consumption by a significant portion of the world's population, leading to health issues and increased mortality rates.

Self-Interest

The consideration of one's own advantage or well-being as the prime motive behind actions or decisions.

Ethical Egoism

A moral philosophy suggesting that individuals should act in ways that promote their own best interest.

Self-Interest

The pursuit of one's own personal benefits, desires, or advantages, often regarded as a fundamental aspect of human behavior.