Bert Had Accounts Receivable of $280,000 and an Allowance for Doubtful

question 39

Multiple Choice

Bert had accounts receivable of $280,000 and an allowance for doubtful accounts of $10,800 just before writing off as worthless an account receivable from Ernie Company of $1,600.After writing off this receivable what would be the balance in Bert's Allowance for Doubtful Accounts?

• A)$10,800 credit balance.
• B)$12,400 credit balance.
• C)$9,200 credit balance.
• D)$9,200 debit balance.

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Definitions:

Daily Sales Rate

The average amount of sales generated per day over a specific period of time.

Composite Score

A metric that combines multiple individual scores or indicators into a single overall measure.

Composite Score

An aggregated score made up of multiple individual scores or metrics to provide a comprehensive evaluation.

Holding Cost Rate

The percentage of the inventory value charged as holding cost over a specific period of time.