A2Z Events
the Following Information Is from the Company's Records

question 9

Multiple Choice

A2Z Events
The following information is from the company's records for Year 1:
$\begin{array}{llr} \text {Credit sales during the year } &\$2,400,000\\ \text { Accounts receivable-December 31, Year 1 } &410,000\\ \text {Allowance for doubtful accounts-December 31, Year 1 } &55,000\\ \text {Bad debt expense for the year } &70,000\\\end{array}$

-Refer to the figure A2Z Events.What are the effects on the accounting equation when the company makes the adjustment to record bad debt expense using the allowance method?

• A) Assets increase and liabilities decrease.
• B) Assets and shareholders' equity decrease.
• C) Assets increase and shareholders' equity decreases.
• D) Assets decrease and shareholders' equity increases.

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Definitions:

Situational Influences

Situational influences refer to external factors that can affect an individual's behavior in a given context, including the physical environment, social interactions, and cultural norms.

Personal Influences

The effects that the personal characteristics, beliefs, attitudes, and actions of individuals have on their own or others' thoughts, feelings, and behaviors.

Superordinate Goals

Shared goals that override differences among people and require their cooperation.

Stereotypes

Widely held but simplified and generalized beliefs about a particular group of people or type of person.