Allegheny Company Ended Year 1 with Balances in Accounts Receivable

question 130

Multiple Choice

Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $64,000 and $3,150, respectively. During Year 2, Allegheny wrote off $5,700 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $5,000. What amount will Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement?

• A)$7,550
• B)$5,000
• C)$1,850
• D)$5,700

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Living Longer

The result of various factors such as genetics, lifestyle choices, and advances in medical care that contribute to an increase in life expectancy.

Self-Control

The ability of an individual to regulate their emotions, thoughts, and behaviors in the face of temptations and impulses.

Sweets

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Type D Personality

A personality trait characterized by a tendency towards negative affectivity (worry, irritability, gloom) and social inhibition.