McConnell's Bakeries Had the Following Balances on December 31,2018,before Any

question 14

Multiple Choice

McConnell's Bakeries had the following balances on December 31,2018,before any adjustment: Accounts Receivable = $100,000;Allowance for Uncollectible Accounts = $4,100 (credit) .McConnell's estimates uncollectible accounts based on an aging of accounts receivable as shown below: What amount of bad debt expense did McConnell's record in its December 31,2018,adjustment to the allowance account?
$$\begin{array} { | c | r | c | } \hline \begin{array} { c } \text { Age Group(days } \\\text { past due) }\end{array} & \begin{array} { r } \text { Accounts } \\\text { Receivable }\end{array} & \begin{array} { r } \text { Estimated Percent } \\\text { Uncollectible }\end{array} \\\hline \text { Not yet due } & \$ 50,000 & 4 \% \\\hline 0 - 30 & \$ 20,000 & 8 \% \\\hline 31 - 60 & \$ 18,000 & 10 \% \\\hline \text { More than } 60 & \$ 12,000 & 40 \% \\\hline\end{array}$$

• A)$10,200.
• B)$12,800.
• C)$15,300.
• D)$6,100.

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Definitions:

Balance Theory

A theory which proposes that the motivation to maintain consistency among one’s thoughts colors how people form new attitudes and can also drive them to change existing attitudes.

Cognitive Dissonance

A psychological conflict resulting from incongruous beliefs and attitudes held simultaneously.

Thoughts

Mental processes or ideas that occur as part of cognitive functions like reasoning, perception, and judgment.

Recency Effect

The tendency to remember more recent information better than earlier information, often impacting how decisions and judgments are made.