Using the Percentage-Of-Receivables Basis, the Uncollectible Accounts for the Year

question 142

Multiple Choice

Using the percentage-of-receivables basis, the uncollectible accounts for the year is estimated to be $38,000. If the balance for the Allowance for Doubtful Accounts is a $7,000 debit before adjustment, what is the amount of bad debt expense for the period?

• A) $7,000
• B) $31,000
• C) $38,000
• D) $45,000

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Definitions:

Legitimate Power

The authority granted to an individual by an organization, recognized and accepted by members for influencing behavior.

Organization

A structured group of individuals working together towards common goals, often within a formal hierarchy.

Job Holders

Individuals currently employed in a particular position, contributing to the roles and functions of an organization.

Power

The ability or capacity of an individual or group to influence or control the actions, behaviors, or opinions of others.