Use the Following to Answer Questions

question 47

Multiple Choice

Use the following to answer questions
On January 1,2016,Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31,000 and $500,respectively.During the year Kincaid reported $72,500 of credit sales.Kincaid wrote off $550 of receivables as uncollectible in 2016.Cash collections of receivables amounted to $74,550.Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.
-The amount of uncollectible accounts expense recognized in the 2016 income statement will be:

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

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Definitions:

Slippery Slope

A logical fallacy or argument that suggests a small action will lead to a chain of events resulting in a significant and often negative outcome.

Grief

The deep sorrow that people feel at the death of another. Grief is personal and unpredictable.

Odd Actions

Behaviors or actions that deviate from what is typically expected or considered normal in a given context.

Less Familiar

Referring to something or someone that is not well known or not often encountered, leading to a lack of knowledge or comfort.