A Company Has $80,000 in Outstanding Accounts Receivable and It

question 24

True/False

A company has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 6% of outstanding receivables are uncollectible. The current credit balance (before adjustments) in the allowance for doubtful accounts is $1,200. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for $4,800.

---

Definitions:

Commute Time

The duration of time it takes an individual to travel from home to their place of work or study and vice versa.

Richmond Hill

A town in South-Central Ontario, Canada, part of the Greater Toronto Area.

Standard Deviation

A gauge of the extent to which a collection of numbers varies or is spread out.

Mean Weight

The average weight of a set of objects or individuals, calculated by summing their weights and dividing by the number of objects or individuals.