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

question 95

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 should the balance in the allowance for doubtful accounts be after the bad debts adjustment?

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

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Definitions:

Beta

A measure of a security's volatility in relation to the overall market.

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, often represented by the yield on government bonds.

Preferred Stock

A type of stock that grants holders preference in dividend payments and assets in the event of a liquidation, often without voting rights.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.