The Data Presented Below for Lynx Corp -See the Data for Lynx Corp

question 121

Multiple Choice

The data presented below for Lynx Corp.is for the year ended December 31, 2016: $$\begin{array} { l r } \text { Sales (100\% on credit) } & \$ 1,000,000 \\\text { Sales returns } & 30,000 \\\text { Accounts Receivable (December 31,2016) } & 170,000 \\\text { Allowance for Doubtful Accounts [Cr. B alance] } & \\\quad \text { (Before adjustment at December 31, 2016) } & 1,300 \\\text { Estimated amount of uncollectible accounts based on aging analysis } & 14,000\end{array}$$
-See the data for Lynx Corp. If Lynx Corp.estimates its bad debt to be 1% of net credit sales, what will be the balance in the Allowance for Doubtful Accounts account after the adjustment for bad debts?

• A) $1,300
• B) $9,700
• C) $8,400
• D) $11,000

---

Definitions:

2-Butanone

An organic compound, also known as methyl ethyl ketone, with the formula CH3COC2H5, used as a solvent.

Acid Chloride

A class of organic compounds derived from acids by replacing a hydroxyl group with a chlorine atom, often used as intermediates in synthesis.

Carboxylic Acid

Organic compounds characterized by the presence of a carboxyl group (-COOH), which consists of a carbon atom double-bonded to an oxygen atom and bonded to a hydroxyl group.

(COCl)2

Phosgene gas, a toxic compound used in organic synthesis, characterized by the formula, with two carbonyl chloride groups.