Darby Uses the Allowance Method to Account for Uncollectible Accounts

question 132

Multiple Choice

Darby uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $104,500, allowance for doubtful accounts of $665 (credit) and sales of $925,000. If uncollectible accounts are estimated to be 4% of accounts receivable, what is the amount of the bad debts expense adjusting entry?

• A) $4,845
• B) $4,180
• C) $3,515
• D) $3,700
• E) $3,850

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Definitions:

Transcription Factor

A transcription factor is a protein that regulates the expression of a gene by binding to a specific DNA sequence in association with the gene sequence. A single transcription factor can regulate many genes if they share the same regulatory sequence.

Cis-regulatory Element

A region of non-coding DNA that regulates the transcription of nearby genes, playing a crucial role in controlling gene expression.

Olfactory Receptor

A type of protein located in the cell membranes of olfactory neurons, involved in the detection of smell molecules.

Gene Duplication

The process by which a segment of DNA is copied resulting in multiple copies of the same gene, contributing to genetic variation and evolution.