Using the Percentage-Of-Sales Method, You Estimate That Total Uncollectible Accounts

question 73

Multiple Choice

Using the percentage-of-sales method, you estimate that total uncollectible accounts is $5,875. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $2,635. The amount of the adjusting entry for uncollectible accounts expense is:

• A) $2,635.
• B) $3,240.
• C) $5,875.
• D) $8,510.

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Definitions:

Personal Distress

A psychological state of emotional suffering or discomfort that is personal and subjective in nature.

Impaired Functioning

A reduction in the ability to perform activities of daily living effectively, often due to psychological or physical reasons.

Community Treatment Approach

A therapeutic strategy that involves treating individuals within their own communities, focusing on local resources and support systems.

Humanistic Approach

A psychological perspective that emphasizes individual potential for growth and the importance of self-actualization, self-understanding, and personal responsibility.