Using the Allowance Method, the Uncollectible Accounts for the Year

question 206

Multiple Choice

Using the allowance method, the uncollectible accounts for the year are estimated to be $40,000. If the balance for the Allowance for Doubtful Accounts is a $9,000 credit before adjustment, what is the balance after adjustment?

• A) $9,000
• B) $31,000
• C) $40,000
• D) $49,000

---

Definitions:

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, usually identified by a fall in GDP in two successive quarters.

Supply-Side

A macroeconomic theory arguing that economic growth is most effectively created by lowering taxes and decreasing regulation.

Economic Program

A set of coordinated policies and plans undertaken by a government or organization to achieve specific economic objectives.

New Deal

An array of initiatives, including public infrastructure projects, monetary policy changes, and regulatory measures, implemented by President Franklin D. Roosevelt in the 1930s in the United States to combat the effects of the Great Depression.