Mercy IncUses the Aging of Accounts Receivable Method for Estimating Uncollectible

question 33

Multiple Choice

Mercy Inc.uses the Aging of Accounts Receivable method for estimating uncollectible accounts.The accounting records show the following information at the end of the year:

If the unadjusted credit balance in the Allowance for Doubtful Accounts account before is $15,000,what would be the amount of the adjustment for bad debts?

• A) $64,000
• B) $79,000
• C) $45,000
• D) $34,500

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Definitions:

Biological Needs

Fundamental requirements that sustain the life of an organism, such as food, water, and shelter.

Equality Of Income

A state in which income is distributed equally among individuals or groups in society.

Incentive To Produce

Factors or motivations that encourage firms or individuals to engage in production, often driven by the potential for profit or market demand.

Before-Tax Total Income

The total income earned by an individual or a business before any taxes are deducted.