Upon Completing an Aging Analysis of Trade Receivables, the Accountant

question 12

Multiple Choice

Upon completing an aging analysis of trade receivables, the accountant for Rosco Works estimated that $5,000 of the current $98,000 of trade receivables would be uncollectible. The allowance for doubtful accounts had a $400 credit balance at year-end prior to adjustment. What amount of bad debt expense should appear in Rosco's income statement for the year?

• A) $0
• B) $4,600.
• C) $5,000.
• D) $5,400.

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Definitions:

Simple Tasks

Activities or tasks that require a minimal amount of cognitive or physical effort to complete.

Industrial/Organizational Psychologists

Professionals who apply psychological principles and research methods to improve the workplace environment, productivity, and employee-related issues.

Psychotherapy

A therapeutic treatment involving psychological techniques to improve mental health and well-being.

Need For Achievement

A personal motivation to accomplish tasks of increasing difficulty, excel in achievements, and attain high standards.