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:

Exponential Smoothing

A forecasting technique that applies decreasing weights to past observations, with the most recent observations receiving the most weight.

Smoothing Constant

A parameter used in exponential smoothing models to weigh the significance of the most recent observation in forecasting.

Time Series

Time Series refers to a sequence of data points collected or recorded at successive times, often at regular intervals.

Exponential Smoothing

A time series forecasting method for univariate data that applies decreasing weights over time.