Kennedy Company Uses the Balance Sheet Approach in Estimating Uncollectible

question 197

Multiple Choice

Kennedy Company uses the balance sheet approach in estimating uncollectible accounts expense. The company prepares an adjusting entry to recognize this expense at the end of each month. During the month of July, the company wrote off a $3,500 receivable and made no recoveries of previous write-offs. Following the adjusting entry for July, the credit balance in the Allowance for Impairment was $3,000 larger than it was on July 1. What amount of uncollectible account expense was recorded for July?

• A) $2,500.
• B) $1,000.
• C) $1,500.
• D) $3,500.

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Grasp the impact of structural, demographic, and individual factors on marital decisions.

Compare different legal recognitions of relationships, such as civil unions and marriages, particularly for same-sex couples.

Understand the basic cellular functions and cell division processes.

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Definitions:

Accounting Profits

The net income reported on the financial statements of a company, calculated as total revenues minus explicit costs and depreciation.

Industry Supply

The total quantity of a specific good or service that all firms in an industry are willing to sell at a given price level.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified time period.

Marginal Revenue

The additional revenue that a firm generates from selling one more unit of a good or service.