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:

Aggregate Demand

The all-encompassing desire for goods and services within an economic framework, set against a particular uniform price level over a given interval.

Government Purchases

Expenditures by the government sector for goods and services that it intends to consume or invest in as part of its economic activities.

Stabilize Output

Involves government or central bank interventions to minimize fluctuations in a country's economic production or GDP over the business cycle.

Aggregate Demand

The total demand for all goods and services within an economy at various price levels, in a given time period.