Wellington Corp

question 37

Multiple Choice

Wellington Corp.has outstanding accounts receivable totaling $3 million as of
December 31 and sales on credit during the year of $15 million.There is also a debit 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 balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?

• A)$1,200,000.
• B)$ 228,000.
• C)$ 240,000.
• D)$ 252,000.

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Definitions:

Cultural Values

The set of beliefs, practices, customs, and norms that characterize a particular society or community, guiding behavior and interactions.

Hypothalamus

A region of the brain responsible for producing hormones that control body temperature, hunger, moods, and the release of hormones from many glands, particularly the pituitary gland.

Cerebrum

The largest part of the brain, responsible for various higher functions such as processing sensory information, regulating motor functions, and enabling conscious thought and reasoning.

Right Frontal Lobe

The right-sided section of the frontal lobe of the brain, involved in controlling aspects of behavior, personality, and voluntary movement.