Use This Information to Answer the Following Question

question 144

Multiple Choice

Use this information to answer the following question.
The general ledger account for Accounts Receivable shows a debit balance of $100,000.Allowance for Uncollectible Accounts has a credit balance of $2,000.Net sales for the year were $1,000,000.In the past,2 percent of sales have proved uncollectible,and an aging of accounts receivable accounts results in an estimate of $35,800 of uncollectible accounts.
Using the accounts receivable aging method,the Uncollectible Accounts Expense would be

• A)$33,800.
• B)$36,800.
• C)$35,800.
• D)$37,800.

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Definitions:

Monthly Income

The total amount of money earned or received by an individual or household within a month from all sources.

Hamburger

A popular food item consisting of a cooked patty, usually of ground beef, placed inside a sliced bread roll or bun, often served with various accompaniments and condiments.

Price

The amount of money that must be paid to obtain a given product or service.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.