The Following Information Is from the 2019 Records of Uptown

question 186

Multiple Choice

The following information is from the 2019 records of Uptown Antique Shop:

Bad debts expense is estimated by the percent-of-sales method.Management estimates that 3% of net credit sales will be uncollectible.The ending balance of the Allowance for Bad Debts account after adjustment will be ________.

• A)$6,900
• B)$4,740
• C)$7,740
• D)$3,900

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Definitions:

Management Levels

The different layers of management in an organization, typically categorized as top, middle, and lower, each with specific responsibilities and authority.

Managers

Individuals in an organization responsible for directing and overseeing the work of a group or department, making strategic decisions to achieve organizational goals.

Blind Conformity

The act of following the rules or standards of a group without questioning or understanding them.

Groupthink

Groupthink is a psychological phenomenon that occurs within a group of people when the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.