Using the Percentage-Of-Receivables Method for Recording Bad Debt Expense, Estimated

question 20

Multiple Choice

Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $45,000. If the balance of the Allowance for Doubtful Accounts is $11,000 debit before adjustment what is the amount of bad debt expense for that period?

• A) $45,000
• B) $11,000
• C) $56,000
• D) $34,000

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Definitions:

Functional Group

A specific grouping of atoms within molecules that is responsible for the characteristic chemical reactions of those molecules.

Organic Explosives

Explosive materials composed of organic chemicals that produce a detonation or rapid expansion of gases to generate destructive effects.

Combustion

A chemical reaction that occurs when a substance reacts with oxygen to give off heat and light, often producing flame.

Explosives

A rephrased definition: Chemical compounds or mixtures that release a large amount of energy in a very short time through blasts or combustion.