Using the Percentage- Of- Sales Method, You Estimate That Total

question 88

Multiple Choice

Using the percentage- of- sales method, you estimate that total uncollectible accounts is $6,000. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $2,000. The amount of the adjusting entry is:

• A)$6,000.
• B)$4,000.
• C)$8,000.
• D)$2,000.

Learn how to apply mathematical operations and functions in query criteria and calculations.

Understand the basic principles of accounting information systems.

Recognize the importance and role of input devices and source documents in accounting systems.

Identify the use and purpose of various journals and ledgers in accounting systems.

---

Definitions:

Mutually Advantageous

A situation or agreement that provides benefits to all parties involved, often used in the context of trade or negotiations.

Ice Cream

A frozen dessert made from dairy products, such as milk and cream, often combined with fruits, flavors, or other ingredients.

Apple Pie

A traditional dessert pie, originating from England, made with apple filling enclosed in a pastry crust, often accompanied by ice cream, whipped cream, or cheddar cheese.

Gain From Trade

The advantage or improvement in outcome that countries or individuals achieve by specializing in the production of goods they can produce most efficiently and trading them for others.