The Following Information Is from the 2019 Records of Albert

question 132

Multiple Choice

The following information is from the 2019 records of Albert Book Shop: $$\begin{array} { | l | l | } \hline \text { Accounts receivable, December 31, 2019 } & \$ 45,000 \text { (debit) } \\\hline \text { Allowance for Bad Debts, December 31,2019 prior to adjustment } & 1700 \text { (debit) } \\\hline \text { Net credit sales for } 2019 & 177,000 \\\hline \text { Accounts written off as uncollectible during 2017 } & 20,000 \\\hline \text { Cash sales during 2019 } & 29,500 \\\hline\end{array}$$ Bad debts expense is estimated by the aging-of-receivables method.Management estimates that $5200 of accounts receivable will be uncollectible.Calculate the amount of bad debts expense for 2019.

• A) $4300
• B) $6900
• C) $3500
• D) $5450

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Definitions:

Monetary Rewards

Financial benefits given to individuals or groups as a form of compensation or incentive.

Fairness

Fairness in economics involves equitable access to resources, opportunities, and equitable treatment of individuals within the market and distribution processes.

Willing

The state of being prepared to do something; readiness.

Functioning of Government

Encompasses the operations and actions through which governmental bodies implement policies, provide services, and enforce laws for societal order and welfare.