A Local Dealer Sells Baseballs for $25 Each

question 46

Multiple Choice

A local dealer sells baseballs for $25 each. If $5.27 is the markup, what is the cost?

• A) $25.00
• B) $19.73
• C) $18.73
• D) $30.27

---

Definitions:

Uncollectible Account

An account receivable that cannot be collected due to the debtor being unable or unwilling to pay.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, resulting in the distribution of assets to creditors and discharge of debts.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that may ultimately not be collected.

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or disposal.