In the Balance Sheet at the End of Its First

question 180

Multiple Choice

In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of $82,000. During the year, Dinty wrote off $32,000 of accounts receivable it had attempted to collect and failed. Credit sales for the year were $2,200,000, and cash collections from credit customers totaled $1,950,000.
-What bad debt expense would Dinty report in its first-year income statement?

• A) $50,000.
• B) $82,000.
• C) $114,000.
• D) Can't be determined from the given information

---

Definitions:

Management Development

A process of training and mentoring to improve managerial skills and enhance the performance of managers within an organization.

Fundamentals

Represent the basic principles or foundational elements of a subject, skill, or field of study that are essential for understanding or building more advanced concepts.

Leadership

Leadership is the ability to guide, inspire, and influence a group towards achieving a common goal.

Judgmental Role

A role that involves making decisions or forming opinions about others often based on one’s personal biases or standards.