The Following Accounts Were Abstracted from Todd Co Todd Estimates That 2% of the Gross Accounts Receivable Will

question 26

Multiple Choice

The following accounts were abstracted from Todd Co.'s unadjusted trial balance at December 31, 2007: $\begin{array}{lrr}&\text { Debit } & \text { Credit }\\\text { Accounts receivable } & \$ 750,000 \\\text { Allowance for uncollectible accounts } & 8,000 & \\\text { Net credit sales } & & \$ 3,000,000\end{array}$ Todd estimates that 2% of the gross accounts receivable will become uncollectible.After adjustment at December 31, 2007, the allowance for uncollectible accounts should have a credit balance of

• A)$60,000.
• B)$52,000.
• C)$23,000.
• D)$15,000.

---

Definitions:

Ciliary Action

The movement of cilia, small hair-like structures, which work to move particles or fluids over the surface of certain cells.

Corpus Luteum

A temporary endocrine structure in female ovaries that is involved in the production of progesterone and estrogen during the menstrual cycle and early pregnancy.

Gonadotropins

Hormones produced by the anterior pituitary gland that stimulate the activity of the gonads (ovaries and testes).

Lipotropins

Hormones produced by the anterior pituitary gland, involved in fat metabolism and the stimulation of lipolysis.