The Following Information Is Related to December 31 2021 Balances

question 39

Multiple Choice

The following information is related to December 31 2021 balances. $\begin{array}{lr}\text { Accounts receivable } & \$ 1,400,000 \\\text { Allowance for doubtful accounts } & 120,000 \\\text { Cash realizable value } & 1,280,000\end{array}$ During 2022 sales on account were $390000 and collections on account were $230000.Also during 2022 the company wrote off $22000 in uncollectible accounts.An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $144000.Bad debt expense for 2022 is:

• A)$46000.
• B)$24000.
• C)$144000.
• D)$ 2000.

---

Definitions:

Cruise Ships

Large passenger ships used mostly for vacationing, equipped with a variety of amenities and entertainment facilities.

Security Breeches

Incidents that result in unauthorized access or damage to computer systems, data, or networks.

RFID

Refers to Radio-Frequency Identification, a method utilizing electromagnetic fields to automatically detect and monitor tags affixed to items.

Onboard Purchases

Transactions made during a flight or maritime voyage, typically involving snacks, meals, beverages, or duty-free products.