In 2022, Wilkinson Company Had Net Credit Sales of $2,250,000

question 157

Multiple Choice

In 2022, Wilkinson Company had net credit sales of $2,250,000.On January 1, 2022, Allowance for Doubtful Accounts had a credit balance of $54,000.During 2022, $90,000 of uncollectible accounts receivable were written off.Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis) .If the accounts receivable balance at December 31 was $600,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022?

• A)$ 60,000
• B)$ 25,000
• C)$ 96,000
• D)$ 90,000

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Definitions:

Government Intervention

Actions taken by a government to influence the economy beyond its basic functions, such as regulation, subsidies, and tax policies.

Taxes

Mandatory financial charges or levies imposed by a government on individuals or entities to fund public expenditures.

Human Life

The existence of an individual human being, from birth to death, including all experiences and actions.

Voluntary Risks

Risks that individuals knowingly and willingly choose to take, often after considering the potential benefits and dangers.