A Company Has Net Credit Sales of $750,000 for the Year

question 132

Multiple Choice

A company has net credit sales of $750,000 for the year and it estimates that uncollectible accounts will be 2% of sales. If Allowance for Doubtful Accounts has a credit balance of $2,000 prior to adjustment, its balance after adjustment will be a credit of

• A)$13,000.
• B)$15,000.
• C)$15,040.
• D)$17,000.

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Definitions:

Stromatolites

Layered bio-chemical structures formed in shallow water by the trapping, binding, and cementation of sedimentary grains by microorganisms, mainly cyanobacteria.

Mineralized Layers

Layers or deposits of organic or inorganic material that have been transformed into a solid, mineral-like substance over time.

Bacteria

Microscopic, single-celled organisms found everywhere on Earth, playing critical roles in both the environment and human health.

Lineages of Prokaryotes

The ancestral lines of descent among prokaryotic organisms, which include bacteria and archaea.