Allegheny Company Ended Year 1 with Balances in Accounts Receivable

question 68

Multiple Choice

Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $23,000 and $900,respectively.During Year 2,Allegheny wrote off $1,500 of Uncollectible Accounts.Using the percent of receivables method,Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $1,600.What amount will Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement?

• A)$2,200
• B)$1,500
• C)$700
• D)$1,600

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Definitions:

Field Theory

A psychological theory proposing that one's behavior is a sum of their individual field of influences, including social, environmental, and internal factors.

Cohesion

The degree to which group members stick together and remain united in pursuit of a common objective.

Consensus

General agreement or collective unanimous opinion among members of a group.

Gestalt

A psychological approach that emphasizes understanding the whole experience rather than its parts, often associated with theories of perception and therapy.