During its first year of operations, a company has credit sales of $250,000 and cash sales of $100,000. By the end of the year, cash collections on credit sales total $180,000, and the company estimates uncollectible accounts to be 6% of accounts receivable. The amount to record for the year-end adjusting entry for uncollectible accounts would be:

A. $4,200.
B. $10,200.
C. $6,000.
D. $15,000.


Answer: A

Business

You might also like to view...

A major responsibility of staff specialists is to ensure that lessons learned in more advanced markets are applied to the management of their products in smaller, less developed markets

Indicate whether the statement is true or false

Business

At the beginning of 2019, Statewide Delivery Company has the following account balances:

Accounts Receivable $44,000 (debit balance) Allowance for Bad Debts $8000 (credit balance) Bad Debts Expense $0 During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $780,000, and $16,000 has been written off. At the end of the year, the company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 3.5%. The ending balance of Accounts Receivable is ________. A) $44,000 B) $48,000 C) $56,840 D) $16,000

Business

Each member of the Missile Technology Control Regime administers its missile-related export controls independently

Indicate whether the statement is true or false

Business

Alternative approaches to employee health include all of the following EXCEPT

A. pre-employment medical examinations. B. chiropractic treatments. C. homeopathic treatments. D. relaxation techniques and hypnosis.

Business