Barry Waterhouse Uses the Aging of Accounts Receivable Balance Sheet

question 16

Multiple Choice

Barry Waterhouse uses the aging of Accounts Receivable balance sheet approach to estimate uncollectibles. Not yet due accounts are $260,000, with an estimated uncollectible percentage of 1%. 1-30 days past due accounts are $38,000, with an estimated uncollectible percentage of 5%. Over 30 days past due accounts are $10,700, with an estimated uncollectible percentage of 12%. If the company has a credit balance in Allowance for Doubtful Accounts of $1,000, what is the bad debts expense adjusting entry amount? (Round any intermediate calculations and your final answer to the nearest dollar.)

• A) $5,784
• B) $6,784
• C) $4,784
• D) $2,184

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Definitions:

Fight or Flight

A physiological response to perceived threats that prepares the body to either confront or flee from the threat.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for "fight or flight" responses during stressful situations.

Efferent Nerve Fibres

Nerve fibers that carry impulses away from the central nervous system to effectors such as muscles or glands.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and transmitting information throughout the body.