The Allowance for Bad Debts Account Has a Credit Balance

question 100

Multiple Choice

The Allowance for Bad Debts account has a credit balance of $2,000 before the adjusting entry for bad debt expense. The company's management estimates that 2% of net credit sales will be uncollectible for the year 2015. Net credit sales for the year amounted to $250,000. What will be the balance of the Allowance for Bad Debts reported on the balance sheet at December 31, 2015?

• A)$7,275
• B)$3,075
• C)$7,000
• D)$5,285

Recognize the impact of culture on attribution and behavior interpretation.

Identify the fundamental attribution error and its significance in social psychology.

Comprehend the role of cognitive dissonance in attitude change and behavior.

Understand the mechanisms of stereotype threat and its effects on performance.

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Definitions:

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