Netherland Corporation Has the Following Unadjusted Balances: Accounts Receivable,$80,000 (Debit),and $\begin{array}{|l|r|r|}\hline \text { Accounts Receivable } & 80,000 & \\\hline \text { Sales } & & 80,000 \\\hline\end{array}$

question 256

Multiple Choice

Netherland Corporation has the following unadjusted balances: Accounts Receivable,$80,000 (debit) ,and Allowance for Sales Discounts $300 (credit) .Of the receivables,$50,000 of them are within the 2% discount period,and Netherland expects buyers to take $1,000 in future-period discounts ($50,000 × 2%) arising from this period's sales.The adjusting entry to estimate sales discounts is (are) :

• A) \(\begin{array}{|l|r|r|}
• \hline \text { Accounts Receivable } & 80,000 & \\
• \hline \text { Sales } & & 80,000 \\
• \hline
• \end{array}\)
• B) \(\begin{array}{|l|r|r|}
• \hline \text { Sales Discounts } & 50,000 & \\
• \hline \text { Sales } & & 50,000 \\
• \hline \text { Cost of Goods Sold } & 1,000 & \\
• \hline \text { Inventory Returns Estimated } & & 1,000 \\
• \hline
• \end{array}\)
• C) \(\begin{array}{|l|r|r|}
• \hline \text { Sales Discounts } & 700 & \\
• \hline \text { Allowance for Sales Discounts } & & 700 \\
• \hline
• \end{array}\)
• D) \(\begin{array}{|l|r|r|}
• \hline \text { Sales Discounts } & 1,000 & \\
• \hline \text { Accounts receivable } & & 1,000 \\
• \hline
• \end{array}\)
• E) \(\begin{array}{|l|r|r|}
• \hline \text { Sales Discounts } & 1,000 & \\
• \hline \text { Allowance for Sales Discounts } & & 1,000 \\
• \hline
• \end{array}\)

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Definitions:

Stretches

In spectroscopy, refers to the vibrational movements (stretching and bending) of molecular bonds that are studied to identify functional groups in molecules.

C-H Stretch

Refers to the vibration of a carbon-hydrogen bond in infrared spectroscopy, indicating the presence of C-H bonds in a molecular structure.

Stretching Frequency

A measure related to the energy required for bond stretching in molecular vibrations, commonly observed in infrared spectroscopy.

Hexane

A straight-chain alkane with six carbon atoms, commonly used as a non-polar solvent.