The Following Information Is Related to December 31, 2013 Balances

question 81

Multiple Choice

The following information is related to December 31, 2013 balances. 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:

Financial Benefits

Monetary-based benefits provided to employees, such as insurance, retirement plans, bonuses, and salary increases.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, having a financial interest in the company's performance.

Team Awards

Recognition given to a group of people for their collective performance or achievements in a particular project or area of work.

Bonuses

Additional financial compensation given to employees as a reward for good performance, over and above their regular salary.