Based on the Following Information for Calendar 2018

question 108

Multiple Choice

Based on the following information for calendar 2018:

If bad debts expense is estimated at 1.5% of credit sales,what is the balance in the allowance for doubtful accounts at year end?

• A)$13,000
• B)$15,625
• C)$28,000
• D)$36,000

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Definitions:

Flooding

Flooding is a psychological treatment method that exposes the patient to their fear or trauma in a safe, controlled environment to help them overcome it.

Earthworms

Invertebrate creatures that belong to the class Oligochaeta and play a key role in improving soil fertility by aerating and enriching it.

Nauseating

Causing or liable to cause a sensation of unease or disgust.

Flooding

A psychological therapy technique aimed at treating phobias and anxiety disorders by exposing the patient to their feared object or situation in a controlled environment.