Yatsu Limited Has the Following Information in Its Accounting Records

question 98

Multiple Choice

Yatsu Limited has the following information in its accounting records as at December 31, 2014: A physical inventory count revealed that there was $68,000 in ending inventory.
-The cost of goods purchased is

• A) $129,860.
• B) $134,360.
• C) $121,810.
• D) $117,310.

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Definitions:

Uncollectible Account

A receivable that a company has given up on collecting due to the debtor's inability to pay, also known as a bad debt.

Credit Balance

A situation in a financial account where the amount of money deposited exceeds the money withdrawn, or in accounting, when credits exceed debits in an account.

Credit Sales

Transactions in which goods or services are provided to a customer with an agreement to pay later.

Bad Debt Expense

An expense account reflecting the cost of accounts receivable that a company does not expect to collect and has written off.