Abbott Company Uses the Allowance Method of Accounting for Uncollectible

question 106

Multiple Choice

Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of credit sales will be uncollectible. On January 1, Allowance for Doubtful Accounts had a credit balance of $2,400. During the year, Abbott wrote off accounts receivable totaling $1,800 and made credit sales of $100,000. There were no sales returns during the year. After the adjusting entry, the December 31 balance in Bad Debt Expense will be

• A) $1,200
• B) $3,000
• C) $3,600
• D) $7,200

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Definitions:

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Inflammation of the mouth and lips, which can cause soreness and may result from various causes, including infection, irritation, or underlying disease.

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Over-the-counter oral hygiene products designed to reduce oral bacteria, freshen breath, and may contain various therapeutic agents.

Nonsense Syllables

A set of letters that do not form known words, used in psychological experiments to study memory and learning processes.

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A language that is not the native language of the speaker, but that is used in the area where they are living or while visiting another country.