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:

Sociopolitical Support

Assistance or backing in the context of social and political arenas.

Empowerment

Involves granting individuals or groups more control over their lives or work through increased autonomy, authority, and influence.

Transactional

Pertaining to the conducting of business, or interactions involving an exchange, often characterized by short-term benefits and practicality.

Customize

The process of making or altering something according to the user's personal requirements.