Temper Company Has Credit Sales of $3 Assuming the Company Uses the Aging of Accounts Receivable Method,what

question 138

Multiple Choice

Temper Company has credit sales of $3.10 million for year 2013.Temper estimates that .9% of the credit sales will not be collected.On December 31,2013,the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $2,222.Temper prepares a schedule of its December 31,2013,accounts receivable by age.Based on past experience,it estimates the percent of receivables in each age category that will become uncollectible.This information is summarized here:
$\begin{array}{ccc}\text { December } 31,2013 & \text { Age of Accounts } & \text { Expected Percent } \\\text { Accounts Receivable } & \text { Receivable } & \text { Uncollectible }\\ \$620,000 & \text { Not yet due } & 1.05 \% \\248,000 & 1 \text { to } 30 \text { days past due } & 1.80 \\ 49,600 & 31 \text { to } 60 \text { dlays past due } & 6.30 \\ 24,800 & 61 \text { to } 90 \text { days past due } & 31.75 \\4,960 & \text { Over } 90 \text { days past due } & 66.00\end{array}$
Assuming the company uses the aging of Accounts Receivable method,what is the amount that Temper will enter as the Bad Debt Expense in the December 31 adjusting journal entry?

• A) $25,246.40
• B) $27,468.40
• C) $23,024.40
• D) $27,900.00
• E) $24,420.40

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Definitions:

Central Traits

Key characteristics of a personality that influence behavior and are consistent across different situations.

Changeable Aspects

Features or elements of a situation or entity that can be altered or modified.

Temperaments

Inherent personality traits and tendencies that influence how individuals react to their environment.

Gordon Allport

A psychologist known for his theory of personality that emphasized the uniqueness of the individual and the concept of personal traits.