At the End of the Current Year, Accounts Receivable Has

question 20

Multiple Choice

At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,500,000. An analysis of receivables estimates uncollectible receivables as $25,000.​Determine the amount of the adjusting entry for bad debt expense and the adjusted balance of Allowance for Doubtful Accounts, respectively.​

• A) $19,500 and $25,000
• B) $30,500 and $525,000
• C) $19,500 and $525,000
• D) $30,500 and $25,000

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Definitions:

Consumption

The process of using goods and services to fulfill needs or desires, typically referring to the end-use of products by individuals or households.

Mass Production

The manufacturing of large quantities of standardized products, often on assembly lines, enabling economies of scale.

Operations Management

This sector of management deals with formulating and managing the processes involved in producing and innovating business operations for the production of goods or services.

Just-In-Time Performance

is an inventory strategy companies use to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.