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.

---

Definitions:

Institutional Investors

Organizations such as pension funds, insurance companies, and mutual funds that invest large sums of money in securities and other investment assets.

Public Companies

Corporations whose shares are publicly traded on stock exchanges, allowing for public ownership.

Acquisition

The process of gaining control or ownership of another company or asset through purchase or merger.

Merger

The combination of two or more companies into a single entity, often with the goal of increasing market share or efficiency.