The Allowance for Doubtful Debts Account Had a Balance of $4500

question 22

Multiple Choice

The allowance for doubtful debts account had a balance of $4500 before bad debts of $1000 were written off and the allowance was adjusted to 10% of the accounts receivable balance of $22 000. The new amount of allowance for doubtful debts that is deducted from accounts receivable in the balance sheet is:

• A) $1400.
• B) $2200.
• C) $1200.
• D) $1000.

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Definitions:

Teleconferencing

A method of using electronic media to conduct meetings or discussions among people in different locations, via audio, video, or web-based platforms.

Videopresence

Utilizes video conferencing technology to create a virtual presence for communication or collaboration, irrespective of the geographical location of the participants.

WANs

Wide Area Networks (WANs) are telecommunications networks that extend over large geographical distances, connecting different smaller networks such as local area networks (LANs).

LANs

Local Area Networks (LANs) are networks that connect computers and devices in a limited geographical area such as a home, school, or office building, facilitating communication and resource sharing.