At the Beginning of Year 3 Omega Company Had a $60,000

question 9

Multiple Choice

At the beginning of Year 3 Omega Company had a $60,000 balance in its accounts receivable account and a $3,000 balance in allowance for doubtful accounts. During Year 3, Omega experienced the following events.(1) Omega earned $200,000 of revenue on account(2) Collected $210,000 cash from accounts receivable(3) Wrote-off $2,000 of accounts receivable as uncollectibleOmega estimates uncollectible accounts to be 4% of receivables. Based on this information, the December 31, Year 3 unadjusted (current) balance in allowance for doubtful accounts account (balance before expense recognition) is

• A)$1,920.
• B)$5,000.
• C)$1,000.
• D)$920.

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Definitions:

Operating Strategy

A plan that outlines how a business will use its resources to achieve its objectives and maintain competitive advantage.

Corporate Strategy

An overall, long-term plan of action designed to achieve the core objectives and overarching goals of an entire organization.

Strategic Business Unit

A semi-autonomous unit within an organization that focuses on a specific market or product line, often with its own strategic direction.

Strategic Alliance

A cooperative agreement between two or more organizations to pursue a set of agreed upon objectives while remaining independent organizations.