Please Refer to the Following List of Liability Balances - What Is the Total Amount of Long-Term Liabilities?
A)

question 87

Multiple Choice

Please refer to the following list of liability balances. $\begin{array}{|l|r|}\hline \text { Accounts payable } & \$ 12,000 \\\hline \text { Employee benefits payable } & 360 \\\hline \text { Employee income tax payable } & 190 \\\hline \text { Interest payable } & 1,300 \\\hline \text { Estimated warranty payable } & 2,600 \\\hline \text { Long-term notes payable } & 32,000 \\\hline \text { FICA tax payable } & 590 \\\hline \text { Sales tax payable } & 370 \\\hline \text { Long-term notes payable } & 4,000 \\\hline \text { Bond payable } & 50,000 \\\hline \text { Current portion of long-term notes payable } & 2,000 \\\hline\end{array}$
- What is the total amount of long-term liabilities?

• A) $88,000
• B) $86,000
• C) $84,000
• D) $54,000

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Definitions:

Uncollectible Receivables

Debts owed to a company that are considered uncollectible and are written off as a loss.

Bad Debt Expense

An expense account representing the estimated uncollectible accounts receivable.

Direct Write-off Method

An accounting method where bad debts are expensed only when specific accounts are deemed uncollectible and written off.

Uncollectible Accounts Expense

Uncollectible accounts expense is the cost associated with receivables that a company does not expect to collect, impacting the net income and accurate representation of receivables.