Sudan Ltd'S Allowance for Doubtful Accounts Was $85,000 at the End

question 7

Multiple Choice

Sudan Ltd.'s allowance for doubtful accounts was $85,000 at the end of 2020 and $105,000 at the end of 2019. For the year ended December 31, 2020, Sudan reported bad debt expense of $18,000 in its income statement. What amount did Sudan debit to allowance for doubtful accounts during 2020 to write off actual bad debts?

• A) $38,000
• B) $34,650
• C) $20,000
• D) $12,000

---

Definitions:

Observable

Capable of being seen or noticed through direct observation.

Motivating Employees

The process of encouraging and inspiring workers to perform their tasks efficiently and effectively.

Expectancy Model

A theory that explains the process individuals use to evaluate the likelihood that their efforts will lead to the desired outcome based on their expectations and the attractiveness of that outcome.

Expectancy Model

A psychological theory proposing that an individual's motivation is related to their expectation of achieving a desired outcome and the value they place on that outcome.