Using the Accounts Receivable Aging Method,estimated Uncollectible Accounts Are $40,000

question 74

Multiple Choice

Using the accounts receivable aging method,estimated uncollectible accounts are $40,000.If the balance of the Allowance for Uncollectible Accounts is an $8,000 debit before adjustment,what is the balance after adjustment?

• A)$8,000
• B)$32,000
• C)$40,000
• D)$48,000

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Definitions:

Unsystematic Risk

The risk associated with a specific company or industry that can be mitigated through diversification.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk or un-diversifiable risk.

Risk Premium

The additional return required by investors for taking a higher level of risk, compared to a safer investment.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, visible in GDP, real income, employment, industrial production, and wholesale-retail sales.