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

---

Definitions:

Marginal Revenue

Enhanced earnings from selling an additional unit of a product or service.

Prefabricated Garages

Structures for vehicle storage that are manufactured off-site in standard sections and then transported and assembled at the final location.

Total Revenue

The total amount of money a company receives from selling its goods or services, before any expenses are deducted.

Price Reduced

A decrease in the selling price of a product or service.