The Following Information Is from the 2015 Records of Armand

question 77

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 Allowance for Bad Debts after the adjustment for bad debt expense at December 31, 2015.

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

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Definitions:

Adult Brains

The fully developed, mature brain of an individual, characterized by completed neural development and the ability to perform complex cognitive functions.

Auditory Sensations

The experiences or perceptions of sound by the ear and interpreted by the brain.

Temporal Lobes

Regions of the brain involved in processing auditory information and encoding memory.

Cerebrum

The largest part of the brain, responsible for higher brain functions such as thought, action, and emotion.