Allowance for Doubtful Accounts Has a Debit Balance of $700

question 91

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $700 at the end of the year, before adjustments. Sales for the year amounted to $920,000, sales discounts amounted to $31,200 and sales returns and allowances amounted to $42,300.
-If the uncollectible accounts expense is estimated at 2% of net sales, the balance in the Allowance for Doubtful Accounts after the entry to record estimated losses from uncollectible accounts will be

• A)$17,630
• B)$16,230
• C)$18,400
• D)$16,930

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Definitions:

Supply Curve

A graph showing the relationship between the price of a good and the quantity supplied, typically upward sloping, indicating that higher prices motivate more supply.

Lower Order Needs

Are physiological, safety and social needs in Maslow’s hierarchy.

Physiological Needs

Basic physical requirements for human survival, such as air, water, food, shelter, and sleep, as identified in Maslow's hierarchy of needs.

Social Needs

Fundamental human requirements for belonging, love, and affection, often motivating behavior and influencing societal relationships.