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:

Mirror Technique

A psychotherapeutic or coaching method that involves using mirrors to help individuals see themselves more clearly, foster self-awareness, or work through body image issues.

Self-awareness

The conscious knowledge of one's own character, feelings, motives, and desires.

Perspective Taking

The ability to understand and consider the world from someone else's viewpoint, recognizing their thoughts, feelings, and motivations.

Psychological

Pertaining to the mind or mental processes, often in relation to behavior and feeling.