McGlone Corporation Had a 1\1\10 Balance in the Allowance for Doubtful

question 130

Multiple Choice

McGlone Corporation had a 1\1\10 balance in the Allowance for Doubtful Accounts of $15,000.During 2010, it wrote off $10,800 of accounts and collected $3,150 on accounts previously written off.The balance in Accounts Receivable was $300,000 at 1\1 and $360,000 at 12\31.At 12\31\10, McGlone estimates that 5% of accounts receivable will prove to be uncollectible.What should McGlone report as its Allowance for Doubtful Accounts at 12\31\10?

• A)$7,200.
• B)$7,350.
• C)$10,350.
• D)$18,000.

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Definitions:

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how much the values differ from the mean.

Mean

The arithmetic average of a set of numbers, calculated by summing them and dividing by the number of numbers.

Area

A quantity expressing the two-dimensional size or extent of a shape or surface, typically measured in square units.

Variance

A measure of dispersion in a set of data points, calculated by taking the average of the squared differences from the mean.