In 2017 the Golic Co

question 185

Multiple Choice

In 2017 the Golic Co. had net credit sales of $900,000. On January 1, 2017, the Allowance for Doubtful Accounts had a credit balance of $22,500. During 2017, $36,000 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 $240,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2017?

• A)$24,000.
• B)$37,500.
• C)$46,500.
• D)$36,000.

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Definitions:

Rear Brake Adjustment

The process of modifying the rear brakes of a vehicle to ensure they engage properly and perform optimally.

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Visual signaling devices at the rear of a vehicle designed to illuminate in red to indicate when the vehicle is braking.

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