A Company Has Net Credit Sales of $750000 for the Year

question 166

Multiple Choice

A company has net credit sales of $750000 for the year and it estimates that uncollectible accounts will be 3% of sales. If Allowance for Doubtful Accounts has a credit balance of $3000 prior to adjustment its balance after adjustment will be a credit of

• A) $19500.
• B) $22500.
• C) $22560.
• D) $25500.

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Definitions:

Properties

Characteristics or attributes that help define mathematical objects, operations, or relations.

Logarithms

The level to which a base, commonly 10 or e, has to be lifted to yield a particular number.

Expand

To expand an algebraic expression means to multiply it out or remove parentheses, simplifying it to a sum or difference of terms.

Properties

Characteristics or attributes that help define mathematical operations or objects, such as commutative, associative, and distributive properties for addition and multiplication.