The Data Below Is for Music Corporation for 2016 -Refer to the Data for Music Corporation

question 60

Multiple Choice

The data below is for Music Corporation for 2016. $$\begin{array} { l r } \text { Accounts receivable-January 1, 2016 } & \$ 236,000 \\\text { Credit sales during 2016 } & 820,000 \\\text { Collections from credit customers during 2016 } & 590,000 \\\text { Customer accounts written off as uncoll ectible during 2016 } & 8,000 \\\text { All owance for doubtful accounts-January 1, 2016 } & 8,700 \\\text { Estimated uncollectible accounts based on an aging analysis } & 9,600\end{array}$$
-Refer to the data for Music Corporation. If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2016?

• A) $8,000
• B) $8,100
• C) $8,700
• D) $8,900

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Definitions:

Internal Decision Makers

Entities or individuals within an organization responsible for making choices that affect the company's operations and strategy.

Managerial Accounting

The method of pinpointing, quantifying, examining, elucidating, and relaying financial data to managers to help achieve the objectives of an organization.

External Auditors

Independent experts who review the financial statements of a company to ensure accuracy and compliance with accounting standards.

Estimates

Approximations or educated guesses used in accounting to quantify amounts when precise measurements are unavailable or impractical.