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

---

Definitions:

Excise Tax

A tax imposed on specific goods, services, or transactions, often with the goal of reducing consumption of certain products or generating revenue.

Government Expenditures

Spending by the government sector on goods and services, including infrastructure, public services, and transfer payments.

Net Taxes

The difference between the taxes paid to the government and the transfers or subsidies received from it.

Government Purchases

Government purchases involve the spending by government entities on goods and services, including investments in public infrastructure, which can influence economic activity.