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:

Reasoning Ability

The capacity to think logically, solve problems, and make rational decisions.

Spatial Abilities

The capacity to understand, reason, and remember the spatial relations among objects or space.

Delivery

The process of giving birth to a baby or the action of delivering goods or services.

Labor

Occurs at about 40 weeks of pregnancy, or 38 weeks after conception; also known as childbirth.