In 2011, Lawrence Company Had Gross Sales of $750,000 on Account

question 129

Multiple Choice

In 2011, Lawrence Company had gross sales of $750,000 on account and granted sales discounts of $15,000. On January 1, 2011, the Allowance for Doubtful Accounts had a credit balance of $18,000. During 2011, $30,000 of uncollectible accounts receivable were written off. Past experiences indicate that 3% of net credit sales become uncollectible. Using the percentage of credit sales method, what would be the adjusted balance in
The Allowance for Doubtful Accounts at December 31, 2011?

• A) $10,050.
• B) $10,500.
• C) $22,050.
• D) $34,500.

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Definitions:

Triple Bottom Line

A sustainability framework that evaluates a company's performance in three areas: social, environmental, and financial, aiming for a balance between profit, people, and the planet.

Eco-Efficiency Measures

Strategies or actions taken by businesses to improve their environmental performance while also reducing costs through efficient resource use.

Strategic Goals

Long-term, overarching objectives that a business or organization aims to achieve, guiding its efforts and resource allocation.

CSR Reporting

CSR reporting involves the disclosure of information by a company about its efforts and performance in areas related to corporate social responsibility, such as environmental sustainability, social well-being, and ethical conduct.