The Data Below Is for Benton Corporation for 2016 ​
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-Refer to the Data for Benton Corporation

question 141

Multiple Choice

The data below is for Benton Corporation for 2016. $$\begin{array} { l r } \text { Accounts Receivable-January 1, 2016 } & \$ 334,000 \\\text { Credit sales during 2016 } & 850,000 \\\text { Collections from credit customers during 2016 } & 725,000 \\\text { Customer accounts written off as uncollectible during 2016 } & 12,000 \\\text { Allowance for Doubtful Accounts [Credit B alance] } & \\\text { (After write-off of uncollectible accounts) } & 1,700 \\\text { Estimated uncollectible accounts based on an aging analysis } & 13,200\end{array}$$ ​
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-Refer to the data for Benton Corporation. If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2016?

• A) $ 2,900
• B) $11,500
• C) $23,500
• D) $26,900

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Definitions:

Prejudice

Negative feelings, opinions, and beliefs associated with a stereotype.

Fundamental Attribution Error

A common cognitive bias where an individual tends to attribute others' behaviors to their character or personality while underestimating situational factors.

Actor/Observer Bias

The tendency to attribute one's own actions to external causes while attributing others' actions to their personality.

Self-Fulfilling Prophecy

A situation where an individual's expectations or the expectations of others lead to behaviors that cause those expectations to come true.