Gross Accounts Receivable Is $39,000

question 77

Multiple Choice

Gross Accounts Receivable is $39,000. Allowance for Doubtful Accounts has a credit balance of $300. Net credit sales for the year are $190,000. In the past, 2% of credit sales had proved uncollectible. What would be the adjusted balance of the Allowance account under the income statement approach?

• A) $4,880
• B) $4,100
• C) $3,800
• D) $3,500

Know the role of merchants in the UCC and how it affects commercial transactions.

Understand how the UCC treats open terms, modifications, and additional terms in contracts.

Comprehend the significance of the UCC’s Statute of Frauds in sales contracts.

Identify how the UCC facilitates commercial transactions and promotes commerce.

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Definitions:

Withdrawal Symptom

Physical or psychological reactions that occur when reducing or stopping the use of a substance on which the body has become dependent.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, used medically as a local anesthetic and abused for its euphoric effects.

Quadrants of Care

A framework used in health services to categorize the types and severity of patients' needs to guide treatment planning and resource allocation.

Psychiatric Disorders

A broad category of mental health conditions characterized by significant disturbances in thought, emotion, or behavior, leading to personal distress or impaired functioning.