A Firm Reported Net Credit Sales of $450,000 During the Year

question 33

Multiple Choice

A firm reported net credit sales of $450,000 during the year and has a balance of $40,000 in its Accounts Receivable account at year-end.Prior to adjustments,Allowance for Doubtful Accounts has a debit balance of $200.The firm estimates its losses from uncollectible accounts to be one-half of 1 percent of net credit sales.The entry to record the estimated losses from uncollectible accounts will include a credit to Allowance for Doubtful Accounts for

• A) $4,500.
• B) $2,450.
• C) $2,250.
• D) $1,800.

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Definitions:

Flexibility

The quality of being able to adapt to new, changing, or emerging conditions, especially in the context of work arrangements and labor markets.

Just Cause Clause

A provision in a contract that restricts an employer's ability to fire employees to situations where there is a legitimate, substantial reason for termination.

Arbitrary Dismissal

Termination of employment without just cause, or in violation of legal or contractual requirements.

Contract Provisions

Specific clauses or terms included in a contract that dictate the obligations, rights, and responsibilities of the parties involved.