Gross Accounts Receivable Is $20,000

question 100

Multiple Choice

Gross Accounts Receivable is $20,000.Allowance for Doubtful Accounts has a credit balance of $400.Net credit sales for the year are $125,000.In the past,2% of credit sales had proved uncollectible,and an aging of the receivables indicates $1,500 is doubtful.Under the balance sheet approach,Bad Debts Expense for the year is:

• A)$1,900.
• B)$2,900.
• C)$2,500.
• D)$1,100.

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Definitions:

U.S. Exports

Goods and services produced in the United States and sold to other countries.

Outflow of Payments

The movement of money out of a particular country, company, or household, typically for the purpose of purchasing goods, services, or assets.

Inflow of Payments

The total amount of money coming into a firm, organization, or economy from various sources over a period of time.

Bretton Woods

Refers to the international monetary system established in 1944, which set up fixed exchange rates and established the International Monetary Fund (IMF) and the World Bank.