Based on the Following Information for Calendar 2021 If Bad Debts Expense Is Estimated at 1

question 101

Multiple Choice

Based on the following information for calendar 2021: $$\begin{array} { | l | r | } \hline \text { Accounts receivable, January 1 } & \$ 125,000 \\\hline \text { Credit sales during the year } & 1,400,000 \\\hline \text { Allowance for doubtful accounts, January 1 } & 15,000 \\\hline \text { Cash collected on accounts receivable during the year } & 1,350,000 \\\hline \text { Uncollectible accounts written off during the year } & 8,000 \\\hline\end{array}$$ If bad debts expense is estimated at 1.5% of credit sales, what is the balance in the allowance for doubtful accounts at year end?

• A)$13,000
• B)$15,625
• C)$28,000
• D)$36,000

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Definitions:

Mental Measurement Yearbook

A comprehensive guide that evaluates the reliability and validity of tests in psychology and education.

Buros

An institute known for its critical reviews of commercially available tests through publications like the Mental Measurements Yearbook.

Reliability Estimate

A measure of the consistency of a psychological test or assessment tool across different administrations or portions of the test.

Coefficient Of Determination

A measure that assesses the proportion of variance in a dependent variable that is predictable from the independent variable(s).