The Following Information Is from the 2016 Records of Armand

question 6

Multiple Choice

The following information is from the 2016 records of Armand Camera Shop:
$$\begin{array} { | l | l | } \hline \text { Accounts receivable, 31 December 2016 }&\$ 45,000 \text { (debit) } \\\hline \text { Allowance for doubtfu l debts, 31 December 2016 } \\\text { prior to adjustment } & 1500 \text { (debit) } \\ \hline \text { Net credit sales for 2016 } & 178,000\\ \hline \text { Accounts written off as uncollectable during 2016 } & 16,000 \\\hline \text { Cash sales during 2016 } & 30,000 \\\hline\end{array}$$
Bad debts expense is estimated by the percentage of sales method.The management estimates that 4% of net credit sales will be uncollectable.Calculate the amount of bad debts expense for 2016.

• A) $5320
• B) $7120
• C) $5620
• D) $8320

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Definitions:

Ego Strength

Refers to the ability of the ego to effectively deal with the demands of reality, control impulses, and handle stress.

Fundamental Attribution Error

The tendency for observers to overemphasize personality traits and underestimate situational factors when explaining others' behaviors.

Situational Attributional Tendency

The tendency to attribute an individual's behavior to situational factors rather than to internal personality traits.

Internal Characteristics

The traits, attributes, or features that originate within an individual's psychological or biological makeup.