Scott CoReported an Allowance for Doubtful Accounts of $28,000 (Credit)at December

question 50

Multiple Choice

Scott Co.reported an allowance for doubtful accounts of $28,000 (credit) at December 31,2013,before performing an aging of accounts receivable.As a result of the aging,Scott determined that an estimated $27,000 of the December 31,2013,accounts receivable would prove uncollectible.The adjusting entry required at December 31,2013,would be

• A) Doubtful Accounts Expense ...........27,000
• Allowance for Doubtful Accounts ...27,000
• B) Doubtful Accounts Expense ...........27,000
• Accounts Receivable ...............27,000
• C) Allowance for Doubtful Accounts .....1,000
• Doubtful Accounts Expense .........1,000
• D) Doubtful Accounts Expense ...........1,000
• Allowance for Doubtful Accounts ...1,000

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Definitions:

Proximity

A principle of perception that elements close to each other tend to be perceived as a group.

Similarity

The state or fact of being alike; often used to describe how alike two or more objects, ideas, or concepts are.

Closure

The psychological term for seeking a sense of resolution or completion.

Binocular Disparity

The difference in the images received by the two eyes as a result of their horizontal separation, which is used for depth perception.