Based on the Following Information for Calendar 2021 If the Allowance for Doubtful Accounts Is Estimated at 10

question 31

Multiple Choice

Based on the following information for calendar 2021: $$\begin{array} { | l | r | } \hline \text { Accounts receivable, January 1 } & \$ 125,000 \\\hline \text { Credit sales during the year } & 1,400,000 \\\hline \text { Allowance for doubtful accounts, January 1 } & 15,000 \\\hline \text { Cash collected on accounts receivable during the year } & 1,350,000 \\\hline\end{array}$$ If the allowance for doubtful accounts is estimated at 10% of the ending accounts receivable balance, what is the bad debts expense for 2021?

• A)$1,500
• B)$2,500
• C)$9,500
• D)$17,500

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Definitions:

Hypnosis

A condition of deep concentration and increased openness to suggestion, frequently employed in therapy.

Physical Powers

The ability or capacity to perform physical tasks, often implying strength, agility, or endurance.

Early Childhood

A developmental period ranging from birth to about 8 years old, characterized by rapid physical, cognitive, and social growth.

Hypnotized

The state of having one's consciousness altered to a point where suggestions alter one's thoughts, feelings, or behavior beyond normal voluntary control.