An Aging-Of-Accounts-Receivable Indicates That the Amount of Uncollectible Accounts Is

question 38

Multiple Choice

An aging-of-accounts-receivable indicates that the amount of uncollectible accounts is $7,200. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $2,000. The amount of the adjusting entry should be:

• A)$9,200.
• B)$7,200.
• C)$5,200.
• D)$2,000.

---

Definitions:

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to perform under a contract.

Uniform Commercial Code

A comprehensive set of laws that governs all commercial transactions in the United States.

Nonbreaching Seller

A party in a sales contract who has fulfilled their obligations without any violation of the agreement terms.

Essential Purpose

The fundamental objective or main reason that something exists or is done.