Using the Allowance Method the Uncollectible Accounts for the Year

question 115

Multiple Choice

Using the allowance method the uncollectible accounts for the year is estimated to be $50000.If the balance for the Allowance for Doubtful Accounts is $9000 before adjustment what is the amount of bad debt expense for the period?

• A)$9000
• B)$41000
• C)$50000
• D)$59000

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Definitions:

OSHA

The Occupational Safety and Health Administration (OSHA) is an agency of the United States Department of Labor that ensures safe and healthful working conditions by setting and enforcing standards and by providing training, outreach, education, and assistance.

Employer

An individual or organization that hires and pays individuals for their labor or services.

FICA

Federal Insurance Contributions Act; a U.S. law that requires a payroll tax on both employees and employers to fund Social Security and Medicare.

Social Security

A government program providing economic assistance to people with an inadequate or no income.