Temper Company Has Credit Sales of $3

question 5

Multiple Choice

Temper Company has credit sales of $3.10 million for year 2013.Temper estimates that .9% of the credit sales will not be collected.On December 31,2013,the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $2,222.Temper prepares a schedule of its December 31,2013,accounts receivable by age.Based on past experience,it estimates the percent of receivables in each age category that will become uncollectible.This information is summarized here: Assuming the company uses the aging of Accounts Receivable method,what is the amount that Temper will enter as the Bad Debt Expense in the December 31 adjusting journal entry?

• A)$25,246.40
• B)$27,468.40
• C)$23,024.40
• D)$27,900.00
• E)$24,420.40

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Definitions:

Amphibians

A class of cold-blooded vertebrates that includes frogs, toads, salamanders, and newts, primarily living in moist environments.

Birds

Warm-blooded vertebrates characterized by feathers, beak with no teeth, laying hard-shelled eggs, and a high metabolic rate; members of the class Aves.

Interbreed

To mate or cross different breeds, varieties, or species of organisms, often resulting in hybrid offspring.

Population

A group of individuals of the same species living and interacting within a particular area.