Based on the Following Information If Bad Debts Are Estimated to Be 2% of Net

question 6

Multiple Choice

Based on the following information: $\begin{array}{lr}\text {Sales returns and allowances(credit sales) }&\$ 20,000\\\text {Cash sales }&1,200,000 \\\text {Unadjusted balance in Allowance for Doubtful Accounts }&1,000\text { credit }\\\text {Creclit sales }&2,550,000\\\end{array}$
If bad debts are estimated to be 2% of net credit sales, the adjusting entry to recognize uncollectible accounts will include a debit to expense for

• A)$52, 000
• B)$51, 000
• C)$50, 000
• D)$50, 600

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Definitions:

Arms

Constitutes the upper limbs of the human body extending from the shoulder to the hand, including all the parts within this range.

Female Embryos

Human embryos that are genetically determined to develop as females, typically identified by having two X chromosomes.

Testosterone

A steroid hormone primarily produced in the testes of males and the ovaries of females, influential in the development of male secondary sexual characteristics.

Genitalia

External and internal reproductive organs.