Timkin Creates the Following Accounts Receivable Aging Report at the End

question 166

Multiple Choice

Timkin creates the following accounts receivable aging report at the end of the year: Prior to adjusting entries,the Allowance for Uncollectible Accounts has a debit balance of $500.The year-end adjustment would include a:
$$\begin{array} { | c | r | c | } \hline \text { Age } & \text { Amount } & \text { Estimated uncollectible } \\\hline \begin{array} { c } \text { Less than } 30 \\\text { days }\end{array} & \$ 6,000 & 5 \% \\\hline 31 - 60 \text { days } & \$ 4,000 & 10 \% \\\hline 61 + \text { days } & \$ 2,000 & 25 \% \\\hline\end{array}$$

• A)Credit to Allowance for Uncollectible Accounts for $1,200.
• B)Debit to Bad Debt Expense for $700.
• C)Debit to Bad Debt Expense for $1,700.

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Definitions:

Broca's Area

An area located in the dominant hemisphere's frontal lobe (typically the left side) of the brain, associated with the generation of speech.

Penfield

Refers to Wilder Penfield, a neurosurgeon who made significant contributions to the understanding of the brain's function, particularly in mapping the sensory and motor cortices.

Language-Expression Deficits

Difficulties in the ability to convey thoughts, ideas, or feelings through spoken, written, or nonverbal language.

Wernicke's Aphasia

A form of aphasia characterized by fluent but meaningless speech and difficulty in understanding spoken words, often caused by damage to the posterior section of the temporal lobe.