Craigmont Uses the Allowance Method to Account for Uncollectible Accounts

question 76

Multiple Choice

Craigmont uses the allowance method to account for uncollectible accounts.Its year-end unadjusted trial balance shows Accounts Receivable of $104,500,allowance for doubtful accounts of $665 (credit) and sales of $925,000.If uncollectible accounts are estimated to be 4% of accounts receivable,what is the amount of the bad debts expense adjusting entry?

• A)$4,845
• B)$4,180
• C)$3,515
• D)$3,700
• E)$3,850

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Definitions:

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, such as coronary artery disease, hypertension, and stroke.

Unintentional Injury

Injuries resulting from events that were not intended to cause harm, such as accidents or mishaps.

Survival Rates

The percentage of individuals in a specified group who are alive for a certain period of time after diagnosis or treatment of a condition or disease.

Social Factors

Elements within society that influence individuals' living conditions, behaviors, and health, such as socioeconomic status, culture, and community support.