Kennedy Company Uses the Balance Sheet Approach in Estimating Uncollectible

question 41

Multiple Choice

Kennedy Company uses the balance sheet approach in estimating uncollectible accounts expense.The company prepares an adjusting entry to recognize this expense at the end of each month.During the month of July,the company wrote-off a $3,500 receivable and made no recoveries of previous write-offs.Following the adjusting entry for July,the credit balance in the Allowance for Doubtful Accounts was $3,000 larger than it was on July 1.What amount of uncollectible account expense was recorded for July?

• A)$2,500.
• B)$1,000.
• C)$1,500.
• D)$6,500.

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Definitions:

Completeness Check

In a database, ensures that all required fields have been completed.

Field

The component of a database in which the database stores each category of information.

Multidimensional Database

A database that stores data from different perspectives, called dimensions, and organizes data in cube format.

Cube

A three-dimensional geometric figure with six square faces, all of equal size, and eight vertices.