Multiply, Omitting Zeros in the Calculation and Then Replacing Them

question 24

Multiple Choice

Multiply, omitting zeros in the calculation and then replacing them at the right of the product to obtain the final answer.
-

• A)1,381,000
• B)1,380,000
• C)1,379,501
• D)1,379,000

---

Definitions:

Gross Receivables

The total amount of money owed to a company by its customers before deducting any allowance for doubtful accounts.

Bad Debt Expense

An expense reported on a company's income statement, representing the estimated amount of accounts receivable that will not be collected.

Sales Returns

Goods returned to the seller by the customer post-purchase due to defects or dissatisfaction, affecting the seller's revenue.

Estimated Uncollectibles

Estimated uncollectibles are a provision for debts that are not expected to be collected due to customers being unable or unwilling to pay.