Gross Accounts Receivable Is $18,000

question 99

Multiple Choice

Gross Accounts Receivable is $18,000. Allowance for Doubtful Accounts has a credit balance of $300. Net credit sales for the year are $150,000. In the past, 2% of credit sales had proved uncollectible, and an aging of the receivables indicates $2,100 as uncollectible. What would be the adjusted balance of the Allowance account under the balance sheet approach?

• A) $1,800
• B) $3,300
• C) $2,100
• D) $2,400

---

Definitions:

Minimum Drinking Age

The legal age at which an individual is allowed to purchase and consume alcoholic beverages.

Religious Organization

An institution dedicated to the practice and dissemination of a particular religion or belief system.

Universally Accepted

refers to principles, values, or items widely acknowledged or received across different cultures and societies.

Prohibition Movement

An organized social and political campaign in the early 20th century aimed at the banning of the manufacture, sale, and consumption of alcoholic beverages.