Using the Following Information: During 2014, Sales on Account

question 68

Multiple Choice

Using the following information: During 2014, sales on account were €290,000 and collections on account were €172,000. Also during 2014, the company wrote off €16,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at €118,000. Bad debts expense for 2014 is

• A) €44,000.
• B) €28,000.
• C) €118,000
• D) €2,000.

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Definitions:

Heartburn

A burning sensation beneath the breastbone, usually associated with indigestion.

Laxative

A substance used to stimulate bowel movements, often used to treat constipation.

Vertex

The top of the head, the crown.

Flexible Sigmoidoscope

A scope used for a flexible sigmoidoscopy exam to evaluate the lower part of the large intestine (colon).