A Firm Reported Net Credit Sales of $355,000 for the Year

question 26

Multiple Choice

A firm reported net credit sales of $355,000 for the year and an Accounts Receivable balance of
$20,000 at year-end. Prior to adjustments, Allowance for Doubtful Accounts has a debit balance of
$250. The firm estimates its losses from uncollectible accounts to be one-half of 1 percent of net credit sales. The entry to record the estimated losses from uncollectible accounts will include a credit to Allowance for Doubtful Accounts for

• A)$1,775.
• B)$2,025.
• C)$1,525.
• D)$3,550.

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Definitions:

Certified Mail

A postal service that provides the sender with a mailing receipt and electronic verification that an article was delivered or that a delivery attempt was made.

Service

The act of providing work or assistance to someone, or the performance of duties for a client, customer, or community.

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The formal written response by a defendant to the complaints or charges outlined in a lawsuit.

Allegations

Claims or assertions made by a party in a legal proceeding, which must be proven through evidence.