Allowance for Doubtful Accounts Has an Unadjusted Balance of $400

question 49

Multiple Choice

Allowance for Doubtful Accounts has an unadjusted balance of $400 at the end of the year, and uncollectible accounts expense is estimated at 1% of net sales.If net sales are $300,000, compute the amount of the adjustment to record the provision for doubtful accounts.

• A) $400.
• B) $3,400.
• C) $3,000.
• D) $2,600.

---

Definitions:

Prejudice

A preconceived opinion or judgment about someone or something that is not based on reason or actual experience, often negatively biased.

Gig Economy

A labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs, often facilitated by digital platforms.

Precariat Class

A social class formed by people suffering from precarity, which entails living without predictability or security, especially in employment.

Job Insecurity

The lack of certainty about one's employment status, including the risk of unemployment or underemployment.