On January 1, 2017, Everlight Corp

question 155

Multiple Choice

On January 1, 2017, Everlight Corp. has the following account balances: During the year, Everlight has $150,000 of credit sales, collections of credit sales of $144,000, and write-offs of $3,400. It records bad debts expense at the end of the year using the aging-of-receivables method. At the end of the year, the aging analysis shows that $2,100 is the estimate of uncollectible accounts. Before the year-end entry to adjust the bad debts expense is made, the balance in the Allowance for Bad Debts expense is ________.

• A) a debit of $2,200
• B) a credit of $4,600
• C) a zero balance
• D) a debit of $3,400

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Definitions:

Eye Contact

The act of looking directly into another person's eyes, which can communicate attention, interest, or confidence.

Body Positioning

The arrangement and alignment of an individual's body, especially in relation to tasks, activities, or to convey non-verbal signals.

Proxemics

The study of human use of space within the context of communication, examining how physical distance between individuals affects relationships and interaction.

Nonverbal Communication

The process of conveying information or expressing feelings without the use of spoken words, through body language, facial expressions, and gestures.