This Year Ace Electronics Tried Calculating Its Bad Debts Expense

question 119

Multiple Choice

This year Ace Electronics tried calculating its bad debts expense two different ways.Using a percentage of credit sales,bad debts expense would be $1,500.Based on an aging of accounts receivable,however,bad debts expense would be only $1,200.If Ace decides to report $1,200 of bad debts expense,this accounting choice would be considered ________.

• A)conservative
• B)fundamental
• C)basic
• D)aggressive

---

Definitions:

Delivery

The process of transporting goods from one place to another or the act of providing a service or document.

Acceptance

The act of receiving or agreeing to something, such as a contract offer, thereby creating a legally binding agreement.

Intangible Property

Assets that have value but cannot be physically touched, such as intellectual property or trademarks.

Bank Accounts

Financial accounts held by individuals or entities with a financial institution, allowing for the deposit and withdrawal of money.