Bender Ltd Uses the Allowance Method of Accounting for Bad

question 27

Multiple Choice

Bender Ltd uses the allowance method of accounting for bad and doubtful debts. Their accounts show:
$$\begin{array}{l}\begin{array} { l r } \text { Sales } & \$ 140000 \\\text { Accounts receivable balance } 1 \text { July } 18 & 20000 \\\text { Accounts receivable balance 30 June } 19 & 28000 \\\text { Bad debts written off * } & 3000 \\\text { Discount allowed } & 9000\end{array}\\\text { [*] The direct write-off method is used. }\end{array}$$
The amount of bad debts actually written off during the year is:

• A) $4 000
• B) $7 600
• C) $18 000
• D) $21 600

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Definitions:

CS (Conditioned Stimulus)

A previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.

UCS (Unconditioned Stimulus)

In classical conditioning, an unconditioned stimulus is something that naturally and automatically triggers a response without any learning needed.

Stimulus Generalization

The process by which a response is elicited by stimuli that are similar but not identical to the conditioned stimulus in a conditioning experiment.

Classical Conditioning

A method of conditioning wherein two stimuli are steadily paired; a reaction, initially caused by the second stimulus, is at last caused by the first stimulus by itself.