Abbott Company Uses the Allowance Method of Accounting for Uncollectible

question 115

Multiple Choice

Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of net credit sales will be uncollectible. On January 1, 2010, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2010, Abbott wrote-off accounts receivable totaling $1,800 and made credit sales of $100,000. There were no Sales Returns or Sales Discounts during the year. After the adjusting entry, the December 31, 2010, balance in the Bad Debt Expense would be

• A) $1,200
• B) $3,000
• C) $3,600
• D) $7,200

Understand the event-driven programming model, specifically in the context of GUI elements like buttons.

Recognize and apply the methodologies involved in creating a window in Java applications.

Understand the organization and jurisdiction of U.S. federal courts.

Recognize the types of cases that fall under state versus federal jurisdiction.

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Definitions:

Total Assets

The sum of all assets owned by a company, including both current and non-current assets, representing the total resources the company has at its disposal.

Stockholders' Equity

Refers to the residual interest in the assets of a corporation after deducting its liabilities.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including loans, accounts payable, mortgages, and other debts.

Generally Accepted Accounting Principles (GAAP)

Generally accepted guidelines for the preparation of financial statements.