Using the Percentage of Net Sales Method,uncollectible Accounts Expense for the Year

question 119

Short Answer

Using the percentage of net sales method,uncollectible accounts expense for the year is estimated to be $54,000.If the balance of the Allowance for Uncollectible Accounts is an $18,000 credit before adjustment,what is the balance after adjustment?
a.$72,000
b.$38,000
c.$54,000
d.$18,000

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Definitions:

Power of Test

Refers to the probability that the test correctly rejects the null hypothesis when the alternative hypothesis is true.

Type II Error

The error made when a statistical test fails to reject a false null hypothesis, also known as a false negative outcome.

Test Performance

An evaluation of the efficacy or success of a test, often in the context of education or software testing.

False Null Hypothesis

A hypothetical error that occurs when a true null hypothesis is incorrectly rejected.