If Four Star Uses the Balance Sheet Approach in Estimating

question 44

Multiple Choice

If Four Star uses the balance sheet approach in estimating uncollectible accounts, and aging the accounts receivable indicates the estimated uncollectible portion to be $24,000, the uncollectible accounts expense for the month is:

• A) $24,000.
• B) $13,250.
• C) $34,750.
• D) $10,750.

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Definitions:

Time Devoted

The amount of time spent on a specific activity or task.

Liquidating Partnership

The process of dissolving a business partnership by selling off assets to pay liabilities and distributing the remaining assets to the partners.

Capital Account Balances

The amount recorded in the financial statements of an entity that represents the funds contributed by owners or partners, including retained earnings and additional paid-in capital.

Final Distribution

The process of giving the last allocation or payout, often related to winding up an estate, a trust, or corporate dividends.