A Company Uses the Percent of Receivables Method to Determine

question 209

Multiple Choice

A company uses the percent of receivables method to determine its bad debts expense.At the end of the current year,the company's unadjusted trial balance reported the following selected amounts: All sales are made on credit.Based on past experience,the company estimates that 6% of receivables are uncollectible.What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?

• A)$22,500
• B)$23,000
• C)$22,000
• D)$4,800
• E)$5,500

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Definitions:

Beta Particle

A high-speed electron or positron emitted during the radioactive decay of certain atomic nuclei.

Atomic Nucleus

The dense central core of an atom, consisting of protons and neutrons and housing the majority of an atom's mass.

Beta Particle

A high-energy, high-speed electron or positron emitted during radioactive decay of an atomic nucleus.

Atomic Nucleus

The dense center of an atom, containing protons and neutrons, and holding the bulk of the atom's mass.