Use the Following Information for Questions
a Trial Balance

question 9

Multiple Choice

Use the following information for questions
A trial balance before adjustments included the following: $\begin{array}{lrr}&\text { Debit } & \text { Credit }\\\text { Sales } & & \$ 425,000 \\\text { Sales returns and allowance } & \$ 14,000 & \\\text { Accounts receivable } & 43,000 & \\\text { Allowance for doubtful accounts } & & 760\end{array}$
-If the estimate of uncollectibles is made by taking 2% of net sales, the amount of the adjustment is

• A)$6,700.
• B)$8,220.
• C)$8,500.
• D)$9,740.

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Definitions:

Causes

The reasons or motives behind certain events, actions, or outcomes, identifying why something happens.

Bumper Crop

An unusually large harvest of crops in a particular year.

Fluctuations

Variations or changes in a condition or value over time, often observed in economic indicators, prices, or activity levels.

Agricultural Prices

The prices of commodities produced by the agricultural sector, including crops and livestock, which can fluctuate due to various factors.