Clark Company Estimated the Net Realizable Value of Their Accounts

question 49

Multiple Choice

Clark Company estimated the net realizable value of their accounts receivable as of December 31,2011,based on an aging schedule of accounts receivable,to be $165,000.Clark has also provided the following information:
The accounts receivable balance on December 31,2011 was $175,000.
Uncollectible accounts receivable written-off during 2011 totaled $12,000.
The allowance for doubtful accounts balance on January 1,2011 was $15,000.
How much is Clark's 2011 bad debt expense?

• A)$10,000
• B)$7,000
• C)$13,000
• D)$3,000

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Definitions:

Private Enterprise System

An economic system where private individuals or groups, rather than the state, own and operate businesses.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on factors like location, purchase volume, or customer segment.

Fair Competition

Practices that ensure an equitable and honest competitive environment in the marketplace.

Relationship Management

The strategy and practices of maintaining and improving relationships between an organization and its clients, customers, or other key stakeholders.