Bradford Corporation Reported Net Accounts Receivable of $380,000 and Net

question 53

Multiple Choice

Bradford Corporation reported net accounts receivable of $380,000 and net sales of $2,600,000 for 2012. Allowance for bad debts was $40,000, ending 2012. Rounding to two decimal places, what is Bradford's allowance ratio for 2012?

• A) 10.53%
• B) 9.52%
• C) 1.54%
• D) 1.50%

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Definitions:

Insurable Interest

A requirement stating that a person who purchases an insurance policy must have a vested interest in the subject of the insurance.

Life Insurance

A policy that pays a specified sum to beneficiaries upon the insured person's death.

Continued Life

A term often used in estate planning or business continuity planning that refers to an entity or agreement remaining in effect despite changes in membership or ownership.

Types of Losses

Various categories of detriment or disadvantage experienced, such as financial, operational, or reputational loss.