An Aging of a Company's Accounts Receivable Indicates That the Estimate

question 101

Multiple Choice

An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $4,000. If Allowance for Doubtful Accounts has a $1,200 debit balance, the adjustment to record the bad debt expense for the period will require a

• A) debit to Bad Debt Expense for $5,200.
• B) debit to Bad Debt Expense for $4,000.
• C) debit to Bad Debt expense for $2,800
• D) credit to Allowance for Doubtful Accounts for $5,000.

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Definitions:

Outgroup Heterogeneity Bias

The tendency to view members of an out-group as more diverse and individual than members of one's own in-group.

Ingroup Differentiation Bias

Ingroup differentiation bias is the tendency to perceive and highlight differences within one’s own group, emphasizing diversity and individuality among members.

Outgroup Homogeneity

The perception that members of an outgroup are more similar to each other than they actually are, often attributed to a lack of personal familiarity.

Group Attribution

The tendency to ascribe certain qualities, behaviors, or outcomes to a group as a whole, rather than to its individual members.