On January 1st, 2015, Everlight Corp

question 42

Multiple Choice

On January 1st, 2015, Everlight Corp. has the following balances: During the year, Everlight has $150,000 of credit sales, collections of credit sales of $140,000, and write-offs of $3,000. It records bad debts expense at the end of the year using the aging-of-receivables method. At the end of the year, aging analysis produces a figure of $1,900, being the estimate of uncollectible accounts. Before the year-end entry to adjust the bad debts expense is made, the balance in the Allowance for Bad Debts expense would be:

• A) debit of $1,800.
• B) credit of $4,200.
• C) zero balance.
• D) debit of $3,000.

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Definitions:

Suicidal Intent

A person's determination or plan to end their own life, often associated with mental health issues.

Acute

Describing a condition or illness that is severe but short-lived, often sudden in onset, as opposed to chronic conditions which are long-lasting.

Chronic

Describing something, especially a disease or condition, persisting for a long time or constantly recurring.

Workplace Risk Factors

Elements in a work environment that can contribute to physical or mental health problems among employees.