Using the Aging-Of-Receivables Method to Estimate Uncollectibles, Greeley Corporation Estimates

question 77

Multiple Choice

Using the aging-of-receivables method to estimate uncollectibles, Greeley Corporation estimates that $9,500 of its accounts receivable will be uncollectible. Prior to adjustment, the Allowance for Uncollectible Accounts has a debit balance of $3,000. After all necessary adjusting entries are made, the balance in Allowance for Uncollectible Accounts will be:

• A)$12,500.
• B)$ 9,500.
• C)$ 6,500.
• D)$ 3,000.

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Definitions:

Market Segments

Specific groups within a market, distinguished by their unique needs, preferences, or demographic profiles, which businesses target with tailored products or services.

Break-even Chart

A graphical representation that shows when a business will be able to cover all its expenses and start generating a profit, based on varying levels of output or sales.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums, over a specified period.

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales volume, such as raw materials and labor.