Total Doubtful Accounts at the End of the Year Is

question 62

Multiple Choice

Total doubtful accounts at the end of the year is estimated,using the aging of receivables method,to be $25,000.If the balance for the Allowance for Doubtful Accounts is a $7,000 debit before adjustment,what will be the amount of bad debts expense for the period?

• A)$7,000.
• B)$18,000.
• C)$25,000.
• D)$32,000.

---

Definitions:

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest have been deducted from total revenue.

Debt Investments

Financial assets representing money borrowed that must be repaid, typically with interest, such as bonds or loans.

Stock Investments

Financial assets representing ownership in a company, with the expectation of earning dividends or selling at a higher price for profit.

Brokerage Fees

Charges applied by a broker for performing trades or offering particular services.