Upon Completing an Aging Analysis of Trade Receivables, the Accountant

question 12

Multiple Choice

Upon completing an aging analysis of trade receivables, the accountant for Rosco Works estimated that $5,000 of the current $98,000 of trade receivables would be uncollectible. The allowance for doubtful accounts had a $400 credit balance at year-end prior to adjustment. What amount of bad debt expense should appear in Rosco's income statement for the year?

• A) $0
• B) $4,600.
• C) $5,000.
• D) $5,400.

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Definitions:

Subconscious Motives

Hidden or unconscious drivers behind individuals' behaviors or actions, not directly accessible to the conscious mind.

Future Events

Occurrences or situations that are expected or anticipated to happen in a time following the present.

Organization Corollary

A principle within Kelly's personal construct theory that suggests individuals organize their interpretations of the world into hierarchies to understand it.

Subordinate Constructs

In personal construct psychology, these are narrower, more specific beliefs that fall under broader, more general personal constructs, helping individuals understand their world.