Allowance for Doubtful Accounts Has a Debit Balance of $2,500

question 50

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $2,500 at the end of the year (before adjustment) , and bad debt expense is estimated at 4% of credit sales. If net credit sales are $800,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts is

• A) $29,500
• B) $34,500
• C) $32,000
• D) cannot be determined

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Definitions:

Community

A group of people living in the same place or having a particular characteristic in common.

Biases

Regular patterns of departure from normalcy or logical thinking in making judgments, leading to conclusions about others and circumstances in a way that lacks logic.

Attribution Process

The cognitive process by which individuals infer the causes of their own and others' behavior, attributing it to either internal dispositions or external situations.

Workplace Stereotypes

Preconceived and oversimplified beliefs about certain groups of people within a professional environment, often based on gender, age, race, or occupation.