A Year-End Review of Accounts Receivable and Estimated Uncollectible Percentages

question 85

Multiple Choice

A year-end review of Accounts Receivable and estimated uncollectible percentages revealed the following: Before the year-end adjustment,the credit balance in Allowance for Uncollectible Accounts was $1,300.Under the aging-of-receivables method,the Uncollectible-Account Expense at year-end is:

• A)$1,950.
• B)$9,000.
• C)$10,300.
• D)$11,600.

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Definitions:

Sales Volume Variance

The difference between the actual quantity sold and the budgeted quantity sold, multiplied by the standard selling price per unit.

Purchasing Department

The division within a company responsible for acquiring goods and services necessary for the business operations.

Price Paid

The total monetary expenditure incurred to acquire a product or service, which includes the purchase price and any additional costs.

Materials

Physical items that are used in the production of goods and services, often classified as direct materials (used directly in the final product) and indirect materials (not directly identifiable with the final product).