A Firm Reported Net Credit Sales of $960,000 for the Year

question 51

Multiple Choice

A firm reported net credit sales of $960,000 for the year and an Accounts Receivable balance of
$120,000 at year-end. Prior to adjustments, Allowance for Doubtful Accounts has a debit balance of $820. The firm estimates its losses from uncollectible accounts to be one-half of 1 percent of net credit sales.
-The balance in Allowance for Doubtful Accounts after adjustment is:

• A)$5,620.
• B)$3,980.
• C)$4,800.
• D)$5,080.

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Definitions:

Axons

Long, slender projections of nerve cells (neurons) that transmit electrical impulses away from the neuron's cell body to other neurons, muscles, or glands.

Myelin

A fatty substance that surrounds and insulates the axons of some neurons, enhancing the speed and efficiency of electrical signal transmission.

Receptor Sites

Specific locations on the surface of a cell or within a cell that are sensitive to certain chemicals, hormones, or neurotransmitters.

Neurotransmitters

Chemicals that transmit signals across a synapse from one neuron to another in the brain and nervous system.