Using the Allowance Method, the Uncollectible Accounts for the Year

question 257

Multiple Choice

Using the allowance method, the uncollectible accounts for the year is estimated to be $40,000. If the balance for the Allowance for Doubtful Accounts is a $9,000 credit before adjustment, what is the amount of bad debt expense for the period?

• A) $9,000
• B) $31,000
• C) $40,000
• D) $49,000

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Definitions:

Cnidocyte

Stinging cell unique to cnidarians.

Polyps

Abnormal growths of tissue projecting from a mucous membrane, commonly found in organs such as the nose or intestines.

Closed Circulatory System

A circulatory system where the blood moves through the body in closed vessels, ensuring efficient transport of nutrients and oxygen to cells and removal of waste products.