When Using the Allowance Method to Estimate Uncollectible Accounts Receivable

question 124

Multiple Choice

When using the allowance method to estimate uncollectible accounts receivable based on an analysis of receivables shows that $640 of accounts receivables are uncollectible. The Allowance for Doubtful Accounts has a debit balance of $110. The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of:

• A) $110
• B) $640
• C) $530
• D) $750

Apply knowledge of Myers-Briggs typology to improve interpersonal and managerial communication.

Grasp the design and presentation strategies that cater to specific audience needs in professional writing and speaking.

Understand the value of intrinsic and extrinsic motivators in the context of employee motivation and consumer behavior.

Recognize the significance of empathetic communication in diverse professional settings.

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Definitions:

Materials Price Variance

Materials Price Variance is the difference between the actual cost of materials and the standard cost, indicating how much more or less was paid for materials than expected.

September

The ninth month of the Julian and Gregorian calendars, known for marking the transition from summer to autumn in the Northern Hemisphere.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit of material.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate.