Allowance for Doubtful Accounts Has a Debit Balance of $2,500

question 74

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $2,500 at the end of the year (before adjustment) , and bad debt expense is estimated at 4% of net credit sales. If net credit sales are $800,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts is

• A) $29,500
• B) $34,500
• C) $32,000
• D) cannot be determined

Understand different tactics that can be used to generate commitment in organizational settings.

Appreciate the importance of coping with uncertainty as a source of power within organizations.

Understand the basic components and importance of effective communication in organizations.

Recognize the significance of the encoding and decoding processes in the communication model.

---

Definitions:

Market Price

The price level at which a service or asset is being offered for sale or purchase in the market now.

Ex-dividend Date

The specific date on which a stock trades without its dividend, meaning that if you purchase the stock on or after this date, you will not receive the next dividend payment.

Date Of Record

Date on which holders of record are designated to receive a dividend.

Excess Cash

The amount of cash holdings that exceeds what a business requires for its immediate operational needs.