AT&U Company
Data for the Year Ended December 31, Year

question 102

Multiple Choice

AT&U Company
Data for the year ended December 31, Year 1, are presented below:
$\begin{array}{llr} \text { Sales (credit) } &\$2,500,000\\ \text { Sales returns and allowances } &50,000\\ \text { Accounts receivable (December 31, Year 1) } &640,000\\ \text { Allowance for doubtful accounts} &\\ \text { (before adjustment at December 31, Year 1) } &20,000\\ \text {Estimated amount of uncollected accounts based on aging analysis } &45,000\\\end{array}$

-Refer to the figure AT&U Company.If the company uses the aging of accounts receivable approach to estimate its bad debts,what amount will be reported as bad debt expense for Year 1?

• A) $20,000
• B) $25,000
• C) $45,000
• D) $49,000

---

Definitions:

Informal Leaders

Individuals within an organization who influence others through personal forms of power and relationships rather than through formal authority positions.

Emotional Intelligence (EQ)

The ability to understand and manage one's own emotions, and to be empathetic and effective in handling interpersonal relationships.

Social Skills

The abilities that facilitate interaction and communication with others, allowing for effective participation in social settings.

Emotional Maturity

The ability to understand, manage, and express one’s emotions in a healthy and productive manner.