On December 31 of the Current Year,a Company's Unadjusted Trial

question 175

Multiple Choice

On December 31 of the current year,a company's unadjusted trial balance included the following: Accounts Receivable,debit balance of $88,790; Allowance for Doubtful Accounts,credit balance of $1,245.What amount should be debited to Bad Debts Expense,assuming 4% of outstanding accounts receivable at the end of the current year are considered uncollectible?

• A)$1,245.00
• B)$3,551.60
• C)$4,796.60
• D)$2,306.60
• E)$87,545.00

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to produce and sell, holding other factors constant.

Demand

The desire for a particular good or service combined with the ability and willingness to pay for it.

Emergent Property

A characteristic or phenomenon that arises from the interaction and organization of individual components in a system, not predictable from the properties of the individual parts.

Market Equilibrium

The point at which the quantity of goods supplied equals the quantity demanded at a particular price.