Kelton Inc

question 12

Multiple Choice

Kelton Inc.reported net credit sales of $450,000 for the current year.The unadjusted credit balance in its Allowance for Doubtful Accounts is $750.The company has experienced bad debt losses of 1% of credit sales in prior periods.Using the percentage of credit sales method,what amount should the company record as an estimate of Bad Debt Expense?

• A)$3,750
• B)$4,500
• C)$4,470
• D)$4,800

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Definitions:

Conflict Approach

A perspective that views conflict as an inherent and potentially positive aspect of group interaction, which can stimulate creativity and innovation if managed properly.

Direct Influence

The exertion of power or guidance by one party over another that leads to immediate or direct changes in behavior or decisions.

Sleeper Effect

A delayed increase in the effectiveness of a persuasive message, often occurring when the source’s credibility is reassessed over time.

Peer Pressure

The influence exerted by a peer group in encouraging an individual to change their attitudes, values, or behaviors to conform to group norms.