The General Ledger Account for Accounts Receivable Shows a Debit

question 10

Multiple Choice

The general ledger account for Accounts Receivable shows a debit balance of $50,000.Allowance for Uncollectible Accounts has a credit balance of $3,000.Net sales for the year were $500,000.In the past,3 percent of sales have proved uncollectible,and an aging of accounts receivable resulted in an estimate of $20,000 of uncollectible accounts receivable. Using the accounts receivable aging method,the Allowance for Uncollectible Accounts balance (after adjustment) would be

• A) $23,000.
• B) $20,000.
• C) $17,000.
• D) $21,500.

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Definitions:

Situational Attribution

The process of assigning the cause of behavior to external factors, circumstances, or the environment.

Scapegoats

Individuals or groups blamed for wrongs that they haven't committed, often as a way of deflecting blame from the true culprits.

Least Power

A principle suggesting that in a social relationship, the person who cares the least has the most power.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.