In 2018, Chandler Company Had Net Credit Sales of $1,125,000

question 208

Multiple Choice

In 2018, Chandler Company had net credit sales of $1,125,000. On January 1, 2018, Allowance for Doubtful Accounts had a credit balance of $27,000. During 2018, $42,000 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 $380,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2018?

• A) $23,000
• B) $38,000
• C) $53,000
• D) $97,500

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Definitions:

Word Processing

The use of computer software to create, edit, and print documents.

Office Administrator

An individual responsible for overseeing the daily operations of an office.

Printing

The process of reproducing text and images, typically with ink on paper using a printing press or a printer.

Monetary Products

typically refers to financial products or instruments that are directly related to money or the management of money, such as currency, loans, and investment vehicles; however, this term is not widely used in formal economic contexts and might be considered non-standard.