Use the Following Information for Questions The Balance in Their Allowance for Doubtful Accounts Before Year-End

question 27

Multiple Choice

Use the following information for questions: $$\begin{array} { l c c } \text { Days outstanding } & \text { Balance } & \text { Estimated percentage uncollectible } \\0 - 30 \text { days } & \$ 350,000 & 1 \% \\31 - 60 \text { days } & 275,000 & 2 \% \\61 - 90 \text { days } & 67,500 & 5 \% \\ \text { over } 90 \text { days } & 37,500 & 25 \%\end{array}$$ The balance in their allowance for doubtful accounts before year-end adjustments is a $2,000 credit.
-The balance in the allowance for doubtful accounts after year-end adjustments will be:

• A)$2,000.
• B)$23,750.
• C)$21,750.
• D)$19,750.

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Definitions:

El Escorial

A historical residence of the King of Spain, recognized for its architectural significance and as a symbol of the Spanish Renaissance.

Granite

A very hard, granular, intrusive igneous rock, often used in construction, monuments, and architectural projects for its durability and aesthetic appeal.

Château de Chambord

A renowned Renaissance castle in the Loire Valley of France, noted for its distinctive French Renaissance architecture.

Mannerist

Pertaining to Mannerism, a style of European art in the 16th century that emphasized artificiality, elongated figures, and unusual effects of scale or perspective.