In 2018, Chandler Company Had Net Credit Sales of $1,125,000

question 208

Multiple Choice

In 2018, Chandler Company had net credit sales of $1,125,000. On January 1, 2018, Allowance for Doubtful Accounts had a credit balance of $27,000. During 2018, $42,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis) . If the accounts receivable balance at December 31 was $380,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2018?

• A) $23,000
• B) $38,000
• C) $53,000
• D) $97,500

---

Definitions:

Bonafide Dementia

Genuine cognitive decline that significantly impairs everyday functioning, differentiated from temporary cognitive issues by its persistence and worsening over time.

Neurocognitive Disorder

A category of conditions that significantly affect cognitive functions such as learning, memory, and perception.

Delirium

An acute, often reversible, mental disturbance characterized by confusion, disordered thinking, and reduced awareness of the environment.

Melatonin

A hormone produced by the pineal gland that regulates sleep-wake cycles.