Jobin Company Ended 2012 with Balances in Accounts Receivable and Allowance

question 130

Multiple Choice

Jobin Company ended 2012 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $46,000 and $1,800, respectively. During 2013, Jobin wrote off $3,000 of Uncollectible Accounts. After aging its receivables, Jobin estimates that the ending Allowance for Doubtful Accounts balance should be $3,200. What will Jobin report as Uncollectible Accounts Expense on its 2013 income statement?

• A)$3,200
• B)$4,400
• C)$1,400
• D)$3,000

---

Definitions:

Training Level

The extent or degree of depth and complexity in which skills and knowledge are imparted to individuals during a training program.

Peter Principle

A term coined by author Lawrence J. Peter describing the tendency to promote individuals to their levels of incompetence. The overpromotion syndrome harms the individual and the organization because it inevitably results in lowered morale and job performance.

Organizations

Groups of people who come together to pursue common goals, typically structured and managed through established processes and hierarchies.

Level of Incompetence

a concept from the Peter Principle stating that employees tend to be promoted until they reach a position at which they are no longer competent.