Gross Accounts Receivable Is $21,000

question 32

Multiple Choice

Gross Accounts Receivable is $21,000. Allowance for Doubtful Accounts has a credit balance of $600. Net credit sales for the year are $132,000. In the past, 3% of credit sales had proved uncollectible, and an aging of the receivables indicates $1,800 is doubtful. Under the balance sheet approach, Bad Debts Expense for the year is:

• A) $2,400.
• B) $4,560.
• C) $3,960.
• D) $1,200.

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Definitions:

Reinforce

The act of strengthening a behavior by providing a reward or favorable outcome after the behavior is exhibited.

Organization Stories

Narratives shared within an organization that encapsulate its values, history, and culture, often used to impart lessons or reinforce community.

Communication Culture

The set of shared values, beliefs, and practices regarding how communication is understood and executed within an organization.

Organizational Stories

Narratives shared within an organization that convey values, norms, and practices, playing a key role in shaping organizational culture.