The Following Information Is from the 2015 Records of Armand

question 7

Multiple Choice

The following information is from the 2015 records of Armand Camera Shop: $$\begin{array} { | l | r | } \hline \text { Accounts Receivable, December 31,2015 } & \$ 40,000 \text { (debit) } \\\hline \begin{array} { l } \text { Allowance for Bad Debts, December 31,2015 } \\\text { prior to adjustment }\end{array} & 1,500 \text { (debit) } \\\hline \text { Net credit sales for 2015 } & 175,000 \\\hline \text { Accounts written off as uncollectible during 2015 } & 15,000 \\\hline \text { Cash sales during 2015 } & 27,000 \\\hline\end{array}$$ Bad debts expense is estimated by the aging-of-receivables method. Management estimates that $5,000 of accounts receivable will be uncollectible. Calculate the amount of bad debts expense for 2015.

• A) $7,000
• B) $6,500
• C) $6,450
• D) $5,250

---

Definitions:

Standards

Standards are established norms or requirements in technical systems, ensuring compatibility, safety, and quality across products and services.

W3C

The World Wide Web Consortium, an international community that develops open standards to ensure the long-term growth of the Web.

IETF

The Internet Engineering Task Force, an open international community concerned with the development and promotion of internet standards.

.Gov

An internet top-level domain primarily used by government entities in the United States.