A-One Construction
the Following Data Are from the Company's Records

question 138

Multiple Choice

A-One Construction
The following data are from the company's records for Year 1:
$\begin{array}{ll}\text { Accounts receivable -January 1, Year 1 } & \$ 455,000 \\\text { Credit sales during Year 1 } & 900,000 \\\text { Collections from credit customers during Year 1 } & 825,000 \\\text { Customer accounts written off as uncollected during Year 1 } & 15,000\\\text {Allowance for doubtful accounts}\\\text {(after write-off of uncollected accounts) }&2,100\\\text {Estimated uncollected accounts based on an aging analysis}&29,200\end{array}$
-Refer to the figure A-One Construction.If the aging approach is used to estimate bad debts,what amount should be recorded as bad debt expense for Year 1?

• A) $2,100
• B) $27,100
• C) $29,200
• D) $31,300

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Definitions:

Economic Strategy

A plan of action designed to achieve specific financial or market objectives.

Exports

Items or services that are manufactured in one nation and purchased by consumers in a different country.

Imports

Goods or services brought into a country from abroad for sale or use.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service versus what they actually pay, representing a measure of consumer benefit.