A Company Has $90,000 in Outstanding Accounts Receivable and It

question 43

Multiple Choice

A company has $90,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts.Experience suggests that 4% of outstanding receivables are uncollectible.The current balance (before adjustments) in the allowance for doubtful accounts is an $800 credit.The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:

• A)$2,800
• B)$3,568
• C)$3,632
• D)$3,600
• E)$4,400

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Definitions:

Bacterial Infections

Illnesses caused by harmful bacteria that invade the body, leading to a wide range of symptoms depending on the area affected.

Viral Infections

Viral infections occur when viruses enter and multiply in the living cells of a host, potentially causing a wide range of health problems.

Macrophages

A kind of leukocyte that consumes and breaks down cellular waste, foreign materials, microorganisms, and cancerous cells through a mechanism known as phagocytosis.

Immune System

The complex network of cells, tissues, and organs that work together to defend the body against attacks by foreign invaders, such as bacteria, viruses, and cancer cells.