Piper, Inc

question 101

Multiple Choice

Piper, Inc. had credit sales for the period of $85,000. The balance in Allowance for Doubtful Accounts is a debit of $857. What is the credit to Allowance for Doubtful Accounts if Piper uses the aging method to estimate uncollectible accounts and an aging of Accounts Receivable reflected an estimated amount of uncollectible accounts of $6,382?

• A)$7,239
• B)$5,525
• C)$6,382
• D)$857

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Definitions:

Lumen

The space within an artery, vein, or capillary; the space within a tube.

Artery

A blood vessel carrying blood away from the heart, usually filled with oxygenated blood.

Vein

A blood vessel that carries blood towards the heart. Most veins carry deoxygenated blood from the tissues back to the heart.

Capillary

The smallest of the body's blood vessels, connecting arterioles and venules, and playing a key role in the exchange of water, oxygen, carbon dioxide, and many other nutrients and waste substances between blood and surrounding tissues.