A Company Has an Ending Accounts Receivable Balance of $900,000

question 114

Multiple Choice

A company has an ending accounts receivable balance of $900,000 and it estimates that uncollectible accounts will be 2% of the receivable balance. If Allowance for Doubtful Accounts has a credit balance of $2,000 prior to adjustment, its balance after adjustment will be a credit of

• A) $20,000.
• B) $18,000.
• C) $17,960.
• D) $16,000.

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Definitions:

Cognitive Regulation

The ability to control one's thought processes, manage cognitive activities, and adaptively apply mental skills to various situations.

Etic Approach

An approach that emphasizes the universal aspects of human behavior and development.

Emic Approach

An approach that explores how behavior and development take place within specific cultural contexts.

Cultural Contexts

The various social, religious, economic, and cultural settings that influence and shape individuals' behaviors, values, and beliefs.