Craigmont Uses the Allowance Method to Account for Uncollectible Accounts

question 217

Multiple Choice

Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $104,500, allowance for doubtful accounts of $665 (credit) and sales of $925,000. If uncollectible accounts are estimated to be 4% of accounts receivable, what is the amount of the bad debts expense adjusting entry?

• A) $4,845
• B) $3,700
• C) $3,515
• D) $4,180
• E) $3,850

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Definitions:

Martin Luther

A German theologian and religious reformer who initiated the Protestant Reformation in the 16th century by challenging the practices of the Roman Catholic Church.

Ninety-Five Theses

The list of moral grievances against the Catholic Church by Martin Luther, a German priest, in 1517.

Pope Alexander VI

was Pope from 1492 until his death in 1503, known for his controversial papacy and involvement in political, military, and familial machinations to increase power.

Non-Christian World

Regions or societies where Christianity is not the predominant religion, including a broad range of religious and cultural traditions.