Accelerated Solutions
the Following Information Is from the Company's Records

question 96

Multiple Choice

Accelerated Solutions
The following information is from the company's records for Year 1:
$\begin{array}{lr}\text { Accounts receivable - January 1, Year 1 } & 350,000 \\\text { Credit sales during Year 1 } & 1,200,000 \\\text { Collections from credit customers during Year 1 } & 850,000 \\\text { Customer accounts written off as uncollected during Year 1 } & 10,000 \\\text { Allowance for doubtful accounts -January 1, Year 1 } & 35,000 \\\text { Estimated uncollected accounts based on an aging analysis } & 50,000\end{array}$
-Refer to the figure Accelerated Solutions.If the aging approach is used to estimate bad debts,what is the balance in the allowance for doubtful accounts after the bad debt expense adjustment?

• A) $5,000
• B) $15,000
• C) $25,000
• D) $50,000

---

Definitions:

Actor-observer Bias

A tendency to attribute one's own actions to external factors while attributing others' actions to their internal traits or dispositions.

Causal Dimensions

Attributes or aspects of a cause that affect individuals' perceptions and judgments about the cause, such as its controllability or stability.

Weiner's

refers to the attribution theory of motivation developed by Bernard Weiner, which explains how individuals attribute causes to successes and failures.

Achievement Motivation

The drive to pursue and attain goals or standards of excellence, often characterized by persistence and effort.