Solve the Problem. -The Price of a Printer Was Reduced from $400 to from $400

question 172

Multiple Choice

Solve the problem.
-The price of a printer was reduced from $400 to $260. What was the percent of decrease?

• A) 35%
• B) 53.8%
• C) 40%
• D) 65%

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Definitions:

Allowance Method

An accounting technique used to account for bad debts by estimating and recording uncollectible accounts receivable.

Outstanding Receivables

The total amount of money owed to a company by its customers for goods or services delivered but not yet paid for.

Allowance for Doubtful Accounts

A reserve for accounts receivable that may not be collectable, reducing the book value of accounts receivable to a more realistic value.

Cash Loan

A financial agreement where a borrower receives a specific amount of cash from a lender and commits to repaying it over time, along with interest.