Allowance for Doubtful Accounts Has a Debit Balance of $700

question 91

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $700 at the end of the year, before adjustments. Sales for the year amounted to $920,000, sales discounts amounted to $31,200 and sales returns and allowances amounted to $42,300.
-If the uncollectible accounts expense is estimated at 2% of net sales, the balance in the Allowance for Doubtful Accounts after the entry to record estimated losses from uncollectible accounts will be

• A)$17,630
• B)$16,230
• C)$18,400
• D)$16,930

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Definitions:

Group Size

Group size refers to the number of individuals involved in a social grouping, which can impact dynamics, interaction, and outcomes within the group.

Bystander Effect

A social psychological phenomenon in which individuals are less likely to offer help to a victim when other people are present.

Group Polarization

The inclination of a group to arrive at decisions that are significantly more radical than the original tendencies of its participants.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or societal expectations.