Music Corporation
the Data Below Are for Music Corporation for 2017

question 44

Multiple Choice

Music Corporation
The data below are for Music Corporation for 2017.
?
$$\begin{array} { l r } \text { Accounts receivable-January 1,2017 } & \$ 236,000 \\\text { Credit sales during 2017 } & 820,000 \\\text { Collections from credit customers during 2017 } & 590,000 \\\text { Customer accounts written off as uncollectible during 2017 } & 8,000 \\\text { Allowance for doubtful accounts -January 1, 2017 } & 8,700 \\\text { Estimated uncollectible accounts based on an aging analysis } & 9,600\end{array}$$
-Refer to the data for Music Corporation. If the aging approach is used to estimate bad debts,what amount should be recorded as bad debts expense for 2017?

• A)$8,000
• B)$8,100
• C)$8,700
• D)$8,900

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Definitions:

Capitalistic

Pertaining to an economic system where private owners control trade and industry rather than being state-owned.

China's Agricultural Land

Refers to the area within China designated for farming activities, playing a critical role in the country's food security and economic development.

Private Sector

The part of an economy that is run by individuals and companies for profit, as opposed to being controlled by the government.

Market Oriented

An economic system or approach that prioritizes supply and demand as the primary forces in the market, promoting free competition among businesses.