At the Beginning of 2014, Mark's Sales Had the Following

question 87

Multiple Choice

At the beginning of 2014, Mark's sales had the following ledger balances: During the year there were $450 000 of credit sales, $460 000 of collections, and $3 700 of write- offs. At the end of the year, Mark's adjusted for Bad debts expense using the ageing- of- accounts method, and calculated an amount of $1 600 as their estimate of bad debts. At the end of the year, what was the balance in the Bad debts expense?

• A)$2 300
• B)$2 700
• C)$5 400
• D)$4 300

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Definitions:

Yearly Variations

Changes that occur on an annual basis in various environmental or climatic factors, such as temperature, precipitation, and day length.

Playa

A shallow, closed basin in a generally dry environment.

Alluvial Fan

A fan or cone-shaped deposit of sediment built up by streams, typically found where a fast-flowing river flattens, slows, and spreads typically at the mouth of a canyon.

Desert Wash

A sandy or gravel-rich channel in a desert or other arid region.