The Allowance for Doubtful Debts Currently Has a Debit Balance

question 133

Multiple Choice

The Allowance for doubtful debts currently has a debit balance of $200. The company's management estimates that 2.5% of net credit sales will be uncollectable. Net credit sales are $115 000. What will be the amount of Bad debts expense reported on the income statement?

• A)$2 875
• B)$3 275
• C)$3 075
• D)$2 675

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Definitions:

Inconsistent Parenting

A parenting style characterized by unpredictable feedback and rules, leading to confusion and insecurity in children.

Maternal Smoking

The act of smoking tobacco products by a mother during pregnancy, which can lead to adverse health outcomes for the baby, including low birth weight and developmental issues.

Stressors

External pressures or events that cause stress to an individual, potentially leading to physical and psychological reactions.

ADHD

Stands for Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by difficulties with focus, hyperactivity, and impulsiveness.