Allowance for Doubtful Accounts Has a Debit Balance of $500

question 57

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year,before adjustments.Sales for the year amounted to $870,000,sales discounts amounted to $30,000 and sales returns and allowances amounted to $40,000.If the uncollectible accounts expense is estimated at 2% of net sales,the amount of the adjusting entry to record the estimated losses from uncollectible accounts will be

• A) $17,400
• B) $16,500
• C) $16,000
• D) $15,500

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Definitions:

Equivalent Fraction

Fractions that, although they have different numerators and denominators, represent the same part of a whole.

Division

A mathematical operation involving the process of dividing one number by another to find how many times the divisor fits into the dividend.

Division

The process of ascertaining how many times one number is contained within another.

Addition

The mathematical operation of combining two or more numbers to calculate their total sum.