Ralston Hardware Reported the Following Items for 2014 Experience Indicates That 3% of the Outstanding Accounts Receivable at l

question 80

Multiple Choice

Ralston Hardware reported the following items for 2014: $$\begin{array} { l c } \text { Accounts receivable balance, January 1, 2014 } & \$ 125,000 \\\text { Allowance for doubtful accounts balance, January 1, 2014 } & 3,000 \mathrm { CR } . \\\text { Total credit sales during 2014 } & 653,000 \\\text { Total collections on accounts receivable during 2014 } & 567,000\end{array}$$ Experience indicates that 3% of the outstanding accounts receivable at the end of each year ultimately will be uncollectible.What should be the December 31, 2014, bad debt expense using the percentage- of-receivables method?

• A)$3,330
• B)$6,330
• C)$9,330
• D)$19,590

Recognize grammatical and punctuation errors in written English.

Understand the implications of transitional expressions and their proper use in text.

Identify grammatical and punctuation errors in sentences.

Comprehend the structure and narrative flow in paragraphs.

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Definitions:

Scientific Notation

A method of expressing numbers as a product of a coefficient and a power of ten, used for very large or small numbers.

Milligrams

A unit of mass in the metric system equal to one thousandth of a gram.

Grams

A metric unit of mass equal to one thousandth of a kilogram, widely used in science and everyday measurement.

Liters

A metric unit of volume equal to one cubic decimeter (dm^3), commonly used to measure liquids and other volumetric quantities.