On December 31,2018,Andy Inc A)$6,500
B)$1,500

question 146

Multiple Choice

On December 31,2018,Andy Inc.has a debit balance of $1,500 for the Allowance for Uncollectible Accounts before any year-end adjustment.Andy Inc.also has the following information for its accounts receivable and the estimated percentages of bad debts for different past-due amounts: What is the amount of bad debt expense to be reported on Andy Inc.'s financial statements for 2018 using the aging method?
$$\begin{array} { | c | r | c | } \hline \begin{array} { c } \text { Age Group } \\\text { (days past } \\\text { due) }\end{array} & \begin{array} { r } \text { Accounts } \\\text { Receivable }\end{array} & \begin{array} { c } \text { Estimated Percent } \\\text { Uncollectble }\end{array} \\\hline 0 - 30 & \$ 50,000 & 5 \% \\\hline 31 - 60 & \$ 20,000 & 10 \% \\\hline 61 - 90 & \$ 10,000 & 20 \% \\\hline\end{array}$$

• A)$6,500.
• B)$1,500.
• C)$5,000.
• D)$8,000.

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood control, and the basic emotional drives.

Umami

One of the five basic tastes, characterized by a savory or meaty flavor, and attributed to the presence of glutamates and nucleotides.

Primary Tastes

The fundamental groups of tastes recognized by human taste perception, including sweet, sour, salty, bitter, and umami.

Sweet

A taste sensation often caused by the presence of sugars, perceived as pleasant and liked by most humans.