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question 30

Multiple Choice

[The following information applies to the questions displayed below.]

On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31,000 and $500, respectively. During Year 2, Kincaid reported $72,500 of credit sales, wrote off $550 of receivables as uncollectible, and collected cash from receivables amounting to $74,550. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.


-What is the amount of uncollectible accounts expense that will be reported on the Year 2 income statement?

• A)$310
• B)$725
• C)$745.50
• D)$550

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Definitions:

Structural Configurations

Refers to the arrangement and organization of elements within a system, often used in the context of organizational theory to describe the structure of a company or institution.

Environmental Uncertainty

The degree of unpredictability and complexity in an organization’s external environment.

Organizations

Groups of people with a particular purpose, such as businesses, governments, or charities, structured to achieve collective goals.

High-Performance Work Systems

Organizational structures that enhance effectiveness by integrating employee involvement, technology, and innovative HR practices.