On Average,5% of Total Accounts Receivable Has Been Uncollectible in the Past.At

question 109

Multiple Choice

On average,5% of total accounts receivable has been uncollectible in the past.At the end of the year,the balance of accounts receivable is $100,000 and the allowance for doubtful accounts has a credit balance of $500.Credit sales during the year were $150,000.Using the aging of accounts receivable method,the estimated bad debt expense would be:

• A)$4,500.
• B)$5,000.
• C)$5,500.
• D)Cannot be determined; the aging of accounts receivable method cannot be used as the information provided can only be used for calculating the percentage of credit sales method.

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Definitions:

Fetal Period

The stage of human development that begins around the end of the eighth week after conception and continues until birth.

Embryo

An early developmental stage in many multicellular organisms, following fertilization and preceding fetal development in humans.

Human Organism

A living being that has human biological structures and systems that function interdependently.

Teratogen

A substance or element that induces abnormalities in a developing embryo or fetus.