Ayear minus−end review of accounts receivable and estimated uncollectible percentages revealed the following:

days outstanding

accounts receivable

est. percent uncollectible

1−30 days

62,000

2 %

31−60 days

$44,000

4 %

61−90 days

$25,000

11 %

over 90 days

$7,000

51 %

before the year −end adjustment, the credit balance in allowance for uncollectible accounts was

$1,400. under the aging −of −receivables method, the uncollectible minus−account expense at year−end

is:

a.$7,920.

b.$10,720.

c.$1,240.

d.$9,320.

A.- $ 7,920

Explanation:

We multiply each age-group of accounts  by the percent of uncollectible amount within the group

62,000 x 2% = 1,240

44,000 x 4% = 1,760

25,000 x 11% = 2,750

7,000 x 51% =   3,570

Total year-end allowance: 9,320

less current balance:         (1,400)

year-end adjustment          7,920

This will be the amount we have to adjust the allowance and the bad debt expense to be recognize over the year

answer: i'd say the answer is d because the information system is the human already doing the activity.

one of the appeals of a sole proprietorship is that business expenses are kept separate from your personal income tax return