Using the Aging-Of-Receivables Method to Estimate Uncollectibles, Greeley Corporation Estimates

question 93

Multiple Choice

Using the aging-of-receivables method to estimate uncollectibles, Greeley Corporation estimates that $9,500 of its accounts receivable will be uncollectible. Prior to adjustment, the Allowance for Uncollectible Accounts has a credit balance of $3,000. After all necessary adjusting entries are made, the balance in Allowance for Uncollectible Accounts will be:

• A) $3,000.
• B) $6,500.
• C) $9,500.
• D) $12,500.

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Definitions:

Product Safety

Involves regulations and standards designed to ensure goods and services are safe for consumer use and do not cause harm.

Mandatory Standards

Regulations and criteria that must be followed and met by products, services, or activities, often for safety, health, or environmental reasons.

Pure Food and Drugs Act

An early 20th-century law aimed at regulating the labeling and safety of food and pharmaceuticals in the United States.

Food and Drugs

Pertains to regulations and standards that govern the safety, efficacy, and labeling of food, drugs, and cosmetics to protect public health.