Abbott Company Uses the Allowance Method of Accounting for Uncollectible

question 115

Multiple Choice

Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of net credit sales will be uncollectible. On January 1, 2010, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2010, Abbott wrote-off accounts receivable totaling $1,800 and made credit sales of $100,000. There were no Sales Returns or Sales Discounts during the year. After the adjusting entry, the December 31, 2010, balance in the Bad Debt Expense would be

• A) $1,200
• B) $3,000
• C) $3,600
• D) $7,200

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Definitions:

Prehypertension

A condition where blood pressure is elevated above normal but not high enough to be classified as hypertension.

Patient Diagnosed

The process by which a healthcare professional identifies a specific disease or condition in a patient, typically through evaluation of symptoms, history, and diagnostic tests.

Systolic/Diastolic Measurement

The numerical recording of blood pressure, indicating the pressure during heartbeats and in between beats.

Normal Blood Pressure

A blood pressure reading that falls within the range considered healthy, typically around 120/80 mmHg for an adult.