Agee Corp the Data Presented Below for Agee Corp

question 23

Multiple Choice

Agee Corp. The data presented below for Agee Corp.is for the year ended December 31,2014
See the data for Agee Corp.
If Agee Corp.estimates its bad debts at 1% of net credit sales,what amount will be reported as bad debt expense for 2014?

• A)$12,400
• B)$13,700
• C)$14,000
• D)$14,300

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Definitions:

Internal Service Fund

A proprietary fund in governmental accounting used to account for the financing of goods or services provided by one department to other departments on a cost-reimbursement basis.

Central Data Processing

The handling and processing of data centrally for efficiency and control, typically within the IT department of an organization.

Economic Resources Measurement Basis

An accounting principle that focuses on the valuation and reporting of an entity's assets based on their current economic values rather than historical cost.

Modified Accrual Accounting

This accounting method recognizes revenues when they become available and measurable and expenses when incurred, blending elements of both cash and accrual accounting.