On January 1,2019,Triangle Corp.has the Following Account Balances

question 208

Multiple Choice

On January 1,2019,Triangle Corp.has the following account balances:

Allowance for Bad Debts


During the year,Triangle has $155,000 of credit sales,collections of credit sales of $142,000,and write-offs of $3,400.It records bad debts expense at the end of the year using the aging-of-receivables method.At the end of the year,the aging analysis shows that $2,000 is the estimate of uncollectible accounts.Before the year-end entry to adjust the bad debts expense is made,the balance in the Allowance for Bad Debts is ________.

• A)a debit of $1,800
• B)a credit of $5,000
• C)a zero balance
• D)a debit of $3,400

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Definitions:

Positive Consequence

A beneficial result of a particular action or condition, often used as a form of reinforcement.

Decentralization

The process of distributing or dispersing functions, powers, people, or things away from a central location or authority, often to achieve a more distributed and participatory form of decision-making or governance.

Healthy Distraction

Activities or focuses that provide a mental break from stress or anxiety, contributing to overall well-being by diverting the mind in a positive way.

Constructive Disagreement

Situations where differing opinions lead to positive outcomes through collaborative problem-solving and innovation.