At 1 January, Davidson Services Has the Following Balances

question 102

Multiple Choice

At 1 January, Davidson Services has the following balances: During the year, Davidson had $104 000 of credit sales, collections of $100 000, and write- offs of $1 400. Davidson records Bad debts expense at the end of the year using the percentage- of- sales method, and applies a rate of 1.1%, based on past history.
Prior to the year- end entry to adjust the Bad debts expense, what is the balance in the Allowance for doubtful debts?

• A)Credit of $2 200
• B)Credit of $800
• C)Debit of $600
• D)Debit of $1 400

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Definitions:

XIC

Acronym for "Examine If Closed," a common instruction used in programmable logic controllers (PLCs) to check if a contact or switch is closed.

Internal Relay Instructions

Commands in a PLC or other control systems that enable internal processing signals or operations without using physical relay hardware, often for logic or timing functions.

Output

The information or energy provided as a result of a process, system, or device's operation, often directed to an external or subsequent system.