The Allowance for Uncollectible Accounts Currently Has a Credit Balance

question 127

Multiple Choice

The Allowance for uncollectible accounts currently has a credit balance of $200.The company's management estimates that 2.5% of net credit sales will be uncollectible.Net credit sales are $115,000.What will be the amount of Uncollectible account expense reported on the income statement?

• A) $3,275
• B) $3,075
• C) $2,875
• D) $2,675

---

Definitions:

Kruskal-Wallis Test

A statistical test that doesn't rely on parameter assumptions to evaluate if notable differences exist between two or more independent variable groups, focusing on a continuous or ordinal dependent variable.

Distribution

The spread of values of a variable or the frequencies of occurrence of different possible outcomes in a dataset.

Sign Test Statistic

A test that does not assume a specific data distribution, employed to evaluate if paired observations have a median that differs.

Sign Test

A nonparametric statistical test used to determine if there is a median difference between paired observations.