At January 1,Everbright Sales Has the Following Balances: During

question 91

Multiple Choice

At January 1,Everbright Sales has the following balances: During the year,Everbright has $150,000 of credit sales,collections of $140,000,and write-offs of $3,000.Everbright records Uncollectible accounts expense at the end of the year using the aging method.At the end of the year,the aging analysis produces a figure of $1,900,being the estimate of uncollectible accounts at end of year.
- Before the year-end entry to adjust the Uncollectible accounts expense is made,what is the balance in the Allowance for uncollectible accounts?

• A) Debit of $1,800
• B) Credit of $4,200
• C) Zero balance
• D) Debit of $3,000

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Definitions:

Conceive

To become pregnant or to form a new idea or plan in the mind.

Exposure

The condition of being subject to something which may have an impact, such as disease or elements, or gaining experience in a certain field.

Lead

A chemical element with the symbol Pb that is used in various industries but is toxic to humans and animals when ingested or inhaled.

Radiation

The release of energy in the form of electromagnetic waves or moving particles at the subatomic level, particularly those high-energy particles which lead to ionization.