A Year-End Review of Accounts Receivable and Estimated Uncollectible Percentages

question 127

Multiple Choice

A year-end review of Accounts Receivable and estimated uncollectible percentages revealed the following: At the end of the year,the credit balance in Allowance for Uncollectible Accounts was $700.Under the aging-of-receivables method,the balance in the Allowance for Uncollectible Accounts will be ________ after the adjusting entry is made.

• A)$500
• B)$6,600
• C)$7,300
• D)$8,000

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Definitions:

Statement Of Fact

A declaration or assertion made about a situation or circumstance, often in a legal or official context.

Parol Evidence Rule

A legal principle preventing the introduction of oral or extrinsic evidence to contradict or vary the terms of a written contract.

Misrepresentation

A false statement of fact made by one party to another, which may render a contract voidable.

Easement

A non-possessory right to use and/or enter onto the real property of another without owning it, often for a specific purpose like utilities or access.