Pauline Company Estimates the Allowance for Doubtful Accounts by Aging

question 67

Multiple Choice

Pauline Company estimates the allowance for doubtful accounts by aging its accounts receivable. At the end of 2012, the balance in the allowance account was $50,000. During 2013, the company wrote off $5,000 in bad debts and collected a $3,000 receivable that had been previously written off as uncollectible. At the end of 2013, the aging schedule indicated that the balance of the allowance for doubtful accounts should be $64,000. What is the bad debts expense for 2013?

• A)$16,000
• B)$19,000
• C)$66,000
• D)$69,000

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Definitions:

Job Demand

Refers to the physical, psychological, social, or organizational aspects of a job that require sustained physical and/or mental effort and are therefore associated with certain physiological and/or psychological costs.

Physical Feature

A characteristic of a person's body or of a tangible object that can be perceived through the senses.

Organizational Feature

Characteristics or attributes that define the structure, functions, or culture of an organization, influencing its operational effectiveness.

Burnout

A state of emotional, physical, and mental exhaustion caused by prolonged stress, typically from the workplace.