The Current Debit Balance in Allowance for Doubtful Accounts Is

question 118

Multiple Choice

The current debit balance in allowance for doubtful accounts is $150. Management estimates that 2% of net credit sales of $100,000 will be uncollectible. Based on the foregoing data, what is the bad-debt expense balance on the income statement?

• A)$2,150
• B)$1,850
• C)$3,150
• D)$2,000

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Definitions:

Multiculturalism

Multiculturalism is the acknowledgment, acceptance, and promotion of diverse cultural backgrounds within a society, emphasizing their contributions to the enrichment of the communal fabric.

Cultural Diversity

The presence of various cultural or ethnic groups within a society or organization, enriching its social fabric.

Pluralism

A condition or system where multiple groups, cultures, or entities coexist within a society and maintain their differences.

Informal Network Integration

This refers to the process of connecting and optimizing informal relationships and communication channels within an organization, enhancing collaboration and knowledge sharing.