The Following Information Is Related to December 31, 2013 Balances

question 86

Multiple Choice

The following information is related to December 31, 2013 balances. $\begin{array}{lc}\text {- Accounts receivable } & \$ 700,000 \\\text {- Allowance for doubtful accounts (credit) } & (60,000) \\\text {- Cash realizable value } & 640,000\end{array}$ During 2014 sales on account were $195,000 and collections on account were $115,000. Also, during 2014 the company wrote off $11,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $72,000. Bad debt expense for 2014 is:

• A) $23,000.
• B) $12,000.
• C) $72,000.
• D) $ 1,000.

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Definitions:

Positive Attitudes

Describes a mindset that focuses on the good aspects of situations, promotes optimism, and contributes to well-being.

Value Diversity

Appreciating and respecting the variety of differences in individuals, including culture, race, religion, gender, and sexual orientation.

Values, Attitudes, Behaviors

Core beliefs or principles that influence how individuals perceive the world and drive their actions and reactions.

Mistrusting Attitude

A disposition of doubtfulness or skepticism towards the intentions or integrity of others.