Sigma Reports Net Credit Sales of $480,000

question 114

Multiple Choice

Sigma reports net credit sales of $480,000. There is a credit balance of $1,700 in the Allowance for Doubtful Accounts. Uncollectible accounts are estimated to be 4% of net credit sales. Under the income statement approach, the adjusting entry would require a debit to Bad Debts Expense for: (Round your calculations to the nearest whole dollar.)

• A) $17,500.
• B) $19,200.
• C) $19,132.
• D) some other number.

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Definitions:

Base Pairs

The pairs of nucleotides (adenine with thymine, and cytosine with guanine) in DNA that form the rungs of the double helix structure, fundamental for DNA replication and genetic information.

Catastrophism

The idea that Earth’s geological features are the result of sudden, short-lived, violent events, contrary to gradualism.

Great Flood

A mythical or historical event featured in various cultures' lore involving a catastrophic deluge that covers the Earth or a significant portion of it.

Book of Genesis

The first book of the Bible and the Torah, outlining the creation of the world and the early history of humanity according to Jewish, Christian, and Islamic traditions.