Abbott Company Uses the Allowance Method of Accounting for Uncollectible

question 154

Multiple Choice

Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $2,400. During the year, Abbott wrote off accounts receivable totaling $1,800 and made credit sales of $100,000. After the adjusting entry, the December 31 balance in Bad Debt Expense will be

• A) $1,200
• B) $3,000
• C) $3,600
• D) $7,200

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Definitions:

Role Clarity

The clear understanding by an individual of their job duties, responsibilities, and expectations within an organization.

Role Performance

How well an individual fulfills the expectations and responsibilities of a particular role in social or professional contexts.

Social Communication

The process of sharing information, expressing emotions, and building relationships through verbal and non-verbal means within a social context.

Team Performance

The level of efficiency, effectiveness, and innovation achieved by a group of individuals working together towards common goals.