Abbott Company Uses the Allowance Method of Accounting for Uncollectible

question 137

Multiple Choice

Abbott Company uses the allowance method of accounting for uncollectible accounts.Abbott estimates that 3% of net credit sales will be uncollectible.On January 1,the Allowance for Doubtful Accounts had a credit balance of $2,400.During the year,Abbott wrote off accounts receivable totaling $1,800 and made credit sales of $100,000.There were no sales returns or sales discounts during the year.After the adjusting entry,the December 31,balance in the Bad Debt Expense will be

• A)$1,200
• B)$3,000
• C)$3,600
• D)$7,200

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Definitions:

Employee Voice

The means by which employees communicate their opinions, suggestions, concerns, or ideas about matters affecting them and the organization to management.

Voice

In organizational contexts, voice refers to the act of expressing opinions, concerns, or suggestions by individuals or groups, often aimed at improving conditions or influencing decisions.

Supportive Communication

Engaging in dialogue that is empathetic, encourages positive relationships, and fosters mutual respect.

Organizational Silos

Refers to the separation of different departments or sectors within an organization, operating independently and with limited communication and cooperation.