On January 1, 2014, the Accounts Receivable and the Allowance

question 115

Multiple Choice

On January 1, 2014, the Accounts Receivable and the Allowance for Uncollectible Accounts for Darius Company carried balances of $20,000 and $550 respectively.During the year, the company reported $70,000 of credit sales.There were $400 of receivables written off as uncollectible in 2014.Cash collections of receivables amounted to $74,700.The company estimates that it will be unable to collect 5% of the year-end accounts receivable balance.
The amount of bad debts expense recognized in the 2014 income statement will be:

• A)$545
• B)$595
• C)$745
• D)$795

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Definitions:

Social Hierarchy

The ranking of individuals or groups in a society according to status, authority, or some other criterion.

Colorblind Ideology

A worldview in which group identities are ignored and people are judged solely on their individual merits, thereby avoiding any judgment based on group membership.

Group Identities

The sense of belonging to a particular group, characterized by shared attributes, interests, or goals among its members.

Individual Merits

The acknowledgment and recognition of a person's achievements, abilities, or qualities based on personal effort and talent.