Wellington Corp

question 59

Multiple Choice

Wellington Corp.has outstanding accounts receivable totaling $2.54 million as of December 31 and sales on credit during the year of $12.8 million.There is also a debit balance of $6,000 in the allowance for doubtful accounts.If the company estimates that 1% of its net credit sales will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?

• A)$ 25,400.
• B)$ 31,400.
• C)$122,000.
• D)$134,000.

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Definitions:

Muscle Tone

The continuous and passive partial contraction of the muscles, which helps maintain posture and readiness for action.

Diazepam

A medication belonging to the benzodiazepine class, commonly used to treat anxiety, seizures, muscle spasms, and alcohol withdrawal.

Contractility

The capability of muscular or other tissue to contract or shorten, causing movement or the exertion of force.

Extensibility

The capability of being stretched or extended.