At Year End Dodgy Ltd Had a Balance in Accounts

question 10

Multiple Choice

At year end Dodgy Ltd had a balance in Accounts receivable of $40 000 and an Allowance for doubtful debts of $2 000. It was decided to write off as irrecoverable the debt of Houdini Ltd totalling $3 500. It was further decided that the Allowance for doubtful debts should stand at 10 per cent of Accounts receivable. What was the journal entry needed to bring the Allowance for doubtful debts to the required level after writing off the debt of Houdini Ltd?

• A) DR Bad debts expense $4 000
• CR Allowance for doubtful debts $4 000
• B) DR Bad debts expense $5 150
• CR Allowance for doubtful debts $5 150
• C) DR Bad debts expense $5 500
• CR Allowance for doubtful debts $5 500
• D) DR Allowance for doubtful debts $3 500
• CR Accounts receivable $3 500

Understand the concept and processes involved in genetic modifications and the implications of knockout procedures.

Grasp the fundamentals of genetic inheritance, including the role of alleles, dominant and recessive genes, and eye color genetics.

Comprehend the study of behavioural genetics and the influence of heredity and environmental factors on psychological characteristics.

Recognize the applications of recombinant DNA technology, including the production of human growth hormone for therapeutic purposes.

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Definitions:

Guarantee

A formal assurance that certain conditions will be fulfilled, often related to the quality of a product or service.

Rationalization

Rationalization is a defense mechanism in which controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Chronic Use

The long-term, persistent use of a substance or engagement in a behavior, often leading to dependency or addiction.

Inadequacy

The feeling or state of being insufficient or not good enough to meet a standard or fulfill a need.