The Amount of Uncollectible Accounts at the End of the Year

question 106

Multiple Choice

The amount of uncollectible accounts at the end of the year is estimated,using the aging of receivables method,to be $25,000.The balance in the Allowance for Doubtful Accounts account is an $8,000 credit before adjustment.What should the balance in the Allowance for Doubtful Accounts account be after adjustment?

• A)$8,000.
• B)$17,000.
• C)$25,000.
• D)$33,000.

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Definitions:

Equity Theory

A social psychological theory which posits that individuals gauge the fairness of their work outcomes in relation to others, focusing on the balance between an employee's inputs and the outcomes they receive.

Inequity

A lack of fairness or justice in situations, often leading to disparities in resources, treatment, and opportunities among individuals or groups.

Inputs Or Outcomes

Refers to the resources used or the results achieved in any process or activity, respectively.

Expectancy Model

A psychological theory that explains motivation as a function of an individual's expectations of their ability to achieve a goal and the value they place on that achievement.