The general ledger account for Accounts Receivable shows a debit balance of $25,000 . Allowance for Uncollectible Accounts has a credit balance of $1,500 . Net sales for the year were $250,000 . In the past, 3 percent of sales have proved uncollectible, and an aging of accounts receivable resulted in an estimate of $10,000 of uncollectible accounts receivable. Using the percentage of net sales

method, the Allowance for Uncollectible Accounts balance (after adjustment) would be
a. $7,500.
b. $10,000.
c. $9,000.
d. $6,000.


C

Business

You might also like to view...

Why are marketers particularly concerned about word of mouth?

What will be an ideal response?

Business

U.S. GAAP specifies criteria for a capital lease. Which of the following is not one of the criteria?

a. The lease transfers ownership of the leased asset to the lessee at the end of the lease term. b. Transfer of ownership at the end of the lease term seems likely because the lessee has a bargain purchase option. c. The lease extends for at least 75% of the asset's expected useful life. d. The present value of the contractual minimum lease payments equals or exceeds 75% of the fair value of the asset at the time the lessee signs the lease using a discount rate appropriate for the creditworthiness of the lessee. e. The present value of the contractual minimum lease payments equals or exceeds 90% of the fair value of the asset at the time the lessee signs the lease using a discount rate appropriate for the creditworthiness of the lessee.

Business

The motion for judgment on the pleadings alleges that if the defendant does not file an answer to the plaintiff's complaint, the defendant's liability is established

Indicate whether the statement is true or false

Business

In TCE uncertainty means:

a. Being lost in the detail b. Not being able to control the contingencies of contracts c. Being irrational in planning d. None of the above

Business