Table 9-11 Mark's Sales
at the Beginning of 2019, Mark's

question 69

Multiple Choice

Table 9-11 Mark's Sales
At the beginning of 2019, Mark's sales had the following ledger balances:
$$\begin{array} { | c | c | c | c | c | } \hline \text { Date } & \text { Accounts Receivable } & \text { Debit } & \text { Credit } & \text { Balance } \\\hline & & & & 24,000 \text { Dr. } \\\hline & & & & \\\hline\end{array}$$ $$\begin{array} { | c | c | c | c | c | } \hline \text { Date } & \begin{array} { c } \text { Allowance for } \\\text { Doubtful Accounts }\end{array} & \text { Debit } & \text { Credit } & \text { Balance } \\\hline & & & & 1,000 \mathrm { Cr } \text {. } \\\hline & & & & \\\hline\end{array}$$ $$\begin{array} { | l | l | l | l | l | } \hline \text { Date } & \text { Bad Debts Expense } & \text { Debit } & \text { Credit } & \text { Balance } \\\hline & & & & \\\hline & & & & \\\hline\end{array}$$ During the year there were $450,000 of credit sales, $460,000 of collections, and $3,700
of write-offs.
-Refer to Table 9-11. At the end of the year, Mark's adjusted for uncollectible account expense using the aging method, and calculated an amount of $1,600 as their estimate of uncollectible accounts. At the end of the year, what was the balance in the allowance account?

• A)$1,600
• B)$1,700
• C)$6,400
• D)$2,700

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Definitions:

John Maynard Keynes

A British economist whose ideas fundamentally changed the theory and practice of macroeconomics and economic policies of governments, best known for Keynesian economics.

Classical Economists

Economists from the late 18th and early 19th centuries who focused on the role of free markets in economic development and emphasized the importance of limited government intervention.

Full Employment

The situation in an economy where all who are willing and able to work at prevailing wage rates are employed, with no involuntary unemployment.

Discretionary Fiscal Policy

Involves the use of government spending and tax policies to influence the economy, based on current economic conditions and objectives.