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:

Categories

Classifications or groupings of items or concepts that share common characteristics, used to organize and simplify information or data.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by inappropriate compensatory behaviors such as purging, fasting, or excessive exercise.

Binge-Purge Cycle

A pattern of disordered eating characterized by episodes of excessive food consumption followed by compensatory behaviors like vomiting.

Systematic Desensitization

A therapeutic technique used to reduce phobias and anxiety through gradual exposure to the feared object or situation combined with relaxation exercises.