At the Beginning of 2017,Yummy Cupcakes,Inc

question 40

Multiple Choice

At the beginning of 2017,Yummy Cupcakes,Inc.has the following ledger balances:
Accounts Receivable $40,000 (Debit)
Allowance for Bad Debts $5,000 (Credit)
During the year,credit sales amounted to $820,000.Cash collected on credit sales amounted to $750,000,and $16,000 has been written off.Yummy Cupcakes uses the aging-of-receivables method to record bad debts expense.The estimate of uncollectible accounts was $29,000.The ending balance in the Allowance for Bad Debts is ________.

• A)$40,000
• B)$16,000
• C)$29,000
• D)$24,000

---

Definitions:

At-Will Employee

An employment arrangement where either the employer or the employee can terminate the employment relationship at any time and for any reason, except an illegal one.

Contract

A promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.

Collective Bargaining

The process whereby workers organize collectively and bargain with employers regarding the workplace.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.