A Company Has Net Credit Sales of $900,000 for the Year

question 19

Multiple Choice

A company has net credit sales of $900,000 for the year and it estimates that uncollectible accounts will be 2% of sales. If Allowance for Doubtful Accounts has a credit balance of $1,000 prior to adjustment, its balance after adjustment will be a credit of

• A) $18,000.
• B) $19,000.
• C) $17,980.
• D) $17,000.

---

Definitions:

Vesicular Follicle

A fluid-filled structure in the ovary that contains a maturing ovum or egg.

Interstitial Cell

Cells located in the spaces between the organs or tissues of the body, often referring to cells in the testes that produce testosterone or in various other tissues for support and repair.

Spermatogonium

A male germ cell from which sperm cells are derived, undergoing several stages of division before becoming mature sperm.

Developing Sperm

Developing sperm, or spermatogenesis, is the process during which spermatogonial stem cells divide and differentiate into mature spermatozoa in the testes.