The Data Presented Below Is for Mellon Corporation for the Year

question 3

Multiple Choice

The data presented below is for Mellon Corporation for the year ended December 31, 2016: $\begin{array}{lr}\text { Sales (100\% on credit) } & \$ 1,500,000 \\\text { Sales returns } & 60,000 \\\text { Accounts Receivable (December 31, 2016) } & 250,000 \\\text { Allowance for Doubtful Accounts [Credit B al ance] (Before adjustment at December } & \\31,2016 &3,000 \\\text { Estimated amount of uncollectible accounts based on an aging analysis }&31,000\\\end{array}$
-Refer to information for Mellon Corporation. If Mellon uses 2% of net credit sales to estimate its bad debts, what will be the balance in the Allowance for Doubtful Accounts account after the adjustment for bad debts?

• A) $33,000
• B) $31,800
• C) $27,000
• D) $25,800

---

Definitions:

Driving Skills

Abilities and knowledge necessary for operating a vehicle safely, including motor coordination, spatial awareness, and understanding of traffic laws.

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group which can impair performance in a variety of settings.

Female Asian American

A demographic term referring to women in the United States who have origins in countries in Asia.

Math Test

An examination designed to assess an individual’s understanding and proficiency in mathematical concepts and problem-solving.