At January 1,Davidson Services Has the Following Balances: During

question 17

Multiple Choice

At January 1,Davidson Services has the following balances: During the year,Davidson has $104,000 of credit sales,collections of $100,000,and write-offs of $1,400. Davidson records Uncollectible account expense at the end of the year using the percent-of-sales method,and applies a rate of 1.1%,based on past history.
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After the year-end entry to adjust the Uncollectible accounts expense,what is the ending balance in the Uncollectible accounts expense?

• A) Debit of $1,400
• B) Credit of $1,944
• C) Debit of $1,144
• D) Credit of $544

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Definitions:

Diminishing Marginal Product

The decrease in the output of an additional unit of input when all other inputs are held constant beyond a certain point.

Marginal Product

The additional output gained from employing one more unit of a certain input, keeping all other inputs constant.

Labor Productivity

The measure of economic performance calculated by dividing the output by the number of labor hours used to produce it.

Technological Advance

The process of developing and applying new techniques and tools to improve efficiency, productivity, or quality in various fields.