Morrow Inc

question 68

Multiple Choice

Morrow Inc.uses the percentage of credit sales method of estimating doubtful accounts.The Allowance for Doubtful Accounts has an unadjusted credit balance of $2,700 and the company had $140,000 of net credit sales during the period.Morrow has experienced bad debt losses of 6% of credit sales in prior periods.After making the adjusting entry for estimated bad debts,what is the ending balance in the Allowance for Doubtful Accounts account?

• A)$11,100
• B)$8,400
• C)$8,238
• D)$5,700

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Definitions:

Human Resource Planning

A strategic approach to ensure the right number of people with the right skills are in place to meet an organization's current and future goals.

Internal Sources

Refers to using an organization's existing staff or resources to fill a position or complete a task, as opposed to looking externally.

Recruitment

The process of identifying, attracting, interviewing, selecting, hiring, and onboarding employees to an organization.

Early Retirement Programs

Plans offered by employers that incentivize employees to voluntarily retire before the typical retirement age, often including financial benefits.