The Data Below Is for Music Corporation for 2016 -Refer to the Data for Music Corporation

question 49

Multiple Choice

The data below is for Music Corporation for 2016. $$\begin{array} { l r } \text { Accounts receivable-January 1, 2016 } & \$ 236,000 \\\text { Credit sales during 2016 } & 820,000 \\\text { Collections from credit customers during 2016 } & 590,000 \\\text { Customer accounts written off as uncoll ectible during 2016 } & 8,000 \\\text { All owance for doubtful accounts-January 1, 2016 } & 8,700 \\\text { Estimated uncollectible accounts based on an aging analysis } & 9,600\end{array}$$
-Refer to the data for Music Corporation. If the aging approach is used to estimate bad debts, what is the balance in the Allowance for Doubtful Accounts after the bad debt expense adjustment?

• A) $8,000
• B) $8,100
• C) $8,900
• D) $9,600

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Definitions:

Transferable Partnership Interest

The aspect of a partner's share in a partnership that can be transferred or sold to another party, subject to the partnership agreement.

Judgment

A formal decision or conclusion by a judge or court at the end of a lawsuit.

Legal Partnership

A business structure where two or more individuals manage and operate a business in accordance with the laws and regulations, sharing profits and liabilities.

Public-Private Partnership

A cooperative arrangement between one or more public sectors and private sectors, aimed at funding, designing, implementing, and operating services or infrastructure.