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

question 34

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 should the balance in the Allowance for Doubtful Accounts be after the bad debts adjustment?

• A) $26,900
• B) $14,900
• C) $13,200
• D) $11,500

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Definitions:

Underwood Tariff

An early 20th-century legislative act that substantially reduced tariffs in the United States, aimed at lowering consumer costs and promoting free trade.

Republican Administrations

Refers to periods of governance in the United States when the executive branch is controlled by the Republican Party, typically characterized by certain fiscal, social, and foreign policies.

Trade Deficits

The economic condition that occurs when a country imports more goods and services than it exports, resulting in a negative balance of trade.

Smoot-Hawley Tariff

A U.S. law enacted in 1930, which raised tariffs on over 20,000 imported goods to record levels, leading to a significant decrease in international trade.