Your Company Has Previously Averaged About 26% of Its Accounts

question 152

Multiple Choice

Your company has previously averaged about 26% of its accounts receivable in the "over 90 days past due" category.This year,the company hired a new collections manager and,as a result,management forecasts that only 18% of its accounts receivable will be in this category at the end of the current year.The company uses the aging of accounts receivable method of estimating Bad Debt Expense.If the total of credit sales and year-end balance in accounts receivable remain unchanged from the previous year and no write offs were made during the current year,this year's bad expense will:

• A) increase over the estimate for previous months.
• B) decrease over the estimate for previous months.
• C) not change.
• D) will depend on the percentage of credit sales deemed uncollectible.

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Definitions:

Treatment Providers

Professionals or institutions offering healthcare or therapeutic services to individuals requiring medical or psychological assistance.

Case Managers

Professionals responsible for planning, coordinating, and monitoring services and resources to meet an individual's healthcare, educational, and social service needs.

Referred

The process of directing someone to a different person or organization for information, help, or services.

Sever Contact

The act of intentionally ending or discontinuing all forms of communication or interaction with a person or entity.