The Following Information Is from the 2016 Records of Armand

question 48

Multiple Choice

The following information is from the 2016 records of Armand Camera Shop: $\begin{array}{|l|l|}\hline\text { Accounts receivable, } 31 \text { December } 2016 & \$ 45,000 \text { (debit) } \\\hline \text { Allowance for doubtful debts, 31 December 2016 } & \\\text { prior to adjustment } & 1500 \text { (debit) } \\\hline \text { Net credit sales for 2016 } & 178,000 \\\hline \text { Accounts written off as uncollectable during 2016 } & 16,000 \\\hline \text { Cash sales during 2016 } & 30,000\\\hline\end{array}$ Bad debts expense is estimated by the percentage of sales method.The management estimates that 4% of net credit sales will be uncollectable.Calculate the amount of bad debts expense for 2016.

• A)$5320
• B)$7120
• C)$5620
• D)$8320

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Definitions:

Competitive Advantage

The unique attributes or circumstances that enable a business to outperform its competitors.

Unnecessary Expense

Costs that are not essential for the operation or growth of a business or personal finances, often identified for reduction or elimination in budgeting efforts.

Employee Relations

An HR discipline concerned with strengthening the employer-employee relationship through measuring job satisfaction, employee engagement, and resolving workplace conflicts.

Conducting Attitude Surveys

The process of gathering and analyzing data on the perceptions, opinions, or feelings of individuals or groups towards specific subjects or issues.