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:

Individual Transferable Quota (ITQ)

A fisheries management tool that allocates a certain quantity of fish that can be caught by individuals or companies.

Market Price

The present cost at which an item or service may be purchased or sold within a specific market.

Individual Transferable Quota (ITQ)

A policy tool that allocates the right to harvest a natural resource amount among users through transferable quotas.

Market Price

The price at which a good or service can be bought or sold in the open market, determined by supply and demand.