The Amount of Uncollectible Accounts at the End of the Year

question 215

Multiple Choice

The amount of uncollectible accounts at the end of the year is estimated to be $25,000,using the aging of accounts receivable method.The balance in the Allowance of Doubtful Accounts account is an $8,000 credit before adjustment.What is the adjusted balance of the Allowance for Doubtful Accounts at the end of the year?

• A)$8,000
• B)$17,000
• C)$25,000
• D)$33,000

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Definitions:

Capital Budgeting

Capital budgeting is the process a business undertakes to evaluate potential major investments or expenditures to achieve long-term benefits.

Straight-Line Depreciation

A depreciation method where an asset's cost is evenly distributed over its expected lifespan.

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period.

Capital Budgeting

The process of making long-term planning decisions for investment projects, evaluating their potential profitability and financial impact.