Table 9-5
the Ritchie Company Gathered the Following Information Pertaining

question 48

Multiple Choice

Table 9-5
The Ritchie Company gathered the following information pertaining to its year ended December 31, 2019, prior to any adjustments:
$$\begin{array} { | l | r | r | } \hline \text { Net credit sales for the year } & \$ 780,000 & \\\hline \text { Accounts receivable, Dec. } 31,2019 & 170,000 & \\\hline \text { Allowance for doubtful accounts, } & & \\\text { December } 31,2019 & 3,200 & \mathrm { Cr } . \\\hline & & \\\hline\end{array}$$ Aging of accounts receivable at December 31, 2019:
$$\begin{array} { | l | r | } \hline 1 - 30 \text { days } & \$ 95,000 \\\hline 31 - 60 \text { days } & 38,000 \\\hline 61 - 90 \text { days } & 23,000 \\\hline \text { Over } 90 \text { days } & 14,000 \\\hline \text { Total } & \$ 170,000 \\\hline\end{array}$$
-Refer to Table 9-5. Assume Ritchie uses the percent-of-sales method for estimating uncollectible accounts. Ritchie estimates that bad-debt expense will be 0.6% of net credit sales. The balance in allowance for doubtful accounts after the adjusting entry for uncollectible accounts will be:

• A)$7,880.
• B)$4,680.
• C)$1,480.
• D)$3,200.

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Definitions:

Exchanges

Interactions or transactions between parties, involving the giving and receiving of goods, services, or ideas.

Stranger Phase

A stage in the development of interpersonal relationships where individuals do not yet know each other and are beginning to interact for the first time.

Scripted

Following a pre-defined set of instructions or a detailed plan, often with little room for deviation or improvisation.

Leadership Making

A process of developing, shaping, and influencing others into leaders or enhancing their leadership capabilities.