The Following Information Is Available for Pirate Company: Allowance for Doubtful

question 62

Multiple Choice

The following information is available for Pirate Company: Allowance for Doubtful Accounts at December 31, 2020.................................... $\$ 7,000$
Credit Sales during 2021 .......................................................................................270,000
Accounts Receivable deemed worthless and written off during 2021...................2,800
As a result of a review and aging of Accounts Receivable in early January 2022, however, it has been determined that an Allowance For Doubtful Accounts of $7,500 is required at December 31, 2021. What amount should Pirate record as bad debt expense for calendar 2021?

• A) $4,200
• B) $3,300
• C) $7,500
• D) $74,000

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Definitions:

Absolute Threshold

The lowest level of stimulus strength needed to notice a specific stimulus half of the time.

Sense Receptors

Specialized cells or organs in the body that detect and respond to external stimuli, such as light, sound, or pressure.

Fovea

A small, central pit in the retina of the eye where visual acuity is highest due to a high concentration of cones.

Cones

Cells in the eye's retina known as photoreceptors that enable color perception and operate optimally in well-lit conditions.