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

question 65

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 $900.Under the aging-of-receivables method,the balance in the Allowance for Uncollectible Accounts will be ________ after the adjusting entry is made.

• A)$380
• B)$7,600
• C)$8,500
• D)$9,400

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Definitions:

Inventory

The sum of all goods and materials held by a company in stock, including raw materials, work-in-progress, and finished goods.

Investment Expenditures

Spending on capital goods by firms and households which will be used for future production of goods and services.

GDP Accounting

A method used to calculate the gross domestic product of a country, summing up the total value of all goods and services produced over a specific time period.

Tangible Goods

Tangible goods are physical items that can be touched and seen, distinguished from services or digital products.