Gross Accounts Receivable Is $17,000

question 109

Multiple Choice

Gross Accounts Receivable is $17,000.Allowance for Doubtful Accounts has a credit balance of $100.Net credit sales for the year are $120,000.In the past,2% of credit sales had proved uncollectible,and an aging of the receivables indicates $2,100 as uncollectible.What would be the adjusted balance of the Allowance account under the balance sheet approach?

• A)$2,000
• B)$2,500
• C)$2,100
• D)$2,200

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Definitions:

Informational Social Influence

The influence of others that leads an individual to conform because they believe the group is competent and has the correct information, especially in ambiguous situations.

Normative

Relating to an ideal standard or model, or being based on what is considered to be the normal or correct way of doing something.

Perceptual

Relating to the ability to interpret or become aware of something through the senses.

Disruptive

Causing or tending to cause disruption; interrupting the normal course or unity of something, often leading to innovation or change.