Manley Operates a Law Practice on the Accrual Method and Calendar

question 95

Multiple Choice

Manley operates a law practice on the accrual method and calendar year. At the beginning of the year, Manley's firm had an allowance for doubtful accounts with a balance of $15,000. At the end of the year, Manley recorded bad debt expense of $23,000 and the balance of doubtful accounts had increased to $18,000. What is Manley's deduction for bad debt expense this year?

• A)$23,000
• B)$3,000
• C)$26,000
• D)$5,000
• E)$20,000

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Definitions:

Potential Difference

The difference in electric potential energy per unit charge between two points in a circuit.

Voltage-Gated Channels

Protein channels in cell membranes that open or close in response to changes in electrical potential, allowing ions to pass in and out of the cell.

Repolarization

The process by which cells, particularly nerve and muscle cells, restore their membrane potential to a resting state after depolarization.

All-Or-None Response

A principle that states that nerve or muscle fibers respond to stimuli at their threshold with a complete response or not at all.