Using the Aging-Of-Accounts-Receivable Method,you Estimate That Total Uncollectible Accounts Are

question 152

Multiple Choice

Using the aging-of-accounts-receivable method,you estimate that total uncollectible accounts are $3,800.The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $1,100.The amount of the adjusting entry should be:

• A) $4,900
• B) $3,800
• C) $2,700
• D) $1,100

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Definitions:

Variable Cost Per Unit

The cost that varies with the level of output or production, calculated on a per-unit basis.

Fixed Costs

Expenses that remain constant for a business regardless of the level of production or sales volume.

Break-even Sales

The amount of revenue needed to cover a business's total fixed and variable costs, marking the point at which a business neither makes a profit nor a loss.

Unit Variable Cost

The cost associated with producing one additional unit of a product, varying with the volume of production.