Suppose That the Balance of a Company's Allowance for Uncollectible

question 98

Multiple Choice

Suppose that the balance of a company's Allowance for Uncollectible Accounts was $6,200 (credit) at the end of the year,prior to any adjustments.The company estimated that the total of uncollectible accounts in its accounts receivable was $44,300 at the end of the year.What amount of bad debt expense would appear in the company's year-end income statement?

• A)$38,100.
• B)$105,700.
• C)$33,000.

---

Definitions:

Automated Electronic Processes

Systems or procedures conducted with minimal human intervention through digital or electronic technology to perform tasks or operations.

Industrial Productivity

A measure of the efficiency of production in the industrial sector of the economy, often influenced by advancements in technology and processes.

White-Collar Workers

Employees who perform professional, managerial, or administrative work, often in office settings, as opposed to manual labor.

Treaty of Detroit

This historically refers to any of several agreements made in the 18th and early 19th centuries, often involving land transactions or peace treaties between Native American tribes and colonial or federal governments around the Detroit area.