The Following Information Is from the 2013 Records of Armadillo

question 116

Multiple Choice

The following information is from the 2013 records of Armadillo Camera Shop: $$\begin{array} { | l | r | } \hline \text { Accounts receivable, December 31,2013 } & \$ 20,000 \text { (debit) } \\\hline \begin{array} { l } \text { Allowance for uncollectible accounts, December 31,2013 } \\\text { prior to adjustment }\end{array} & 600 \text { (debit) } \\\hline \text { Net credit sales for 2013 } & 95,000 \\\hline \text { Accounts written off as uncollectible during 2013 } & 7,000 \\\hline \text { Cash sales during 2013 } & 27,000 \\\hline\end{array}$$
- Uncollectible accounts expense is estimated by the percent-of-sales method.Management estimates that 3% of net credit sales will be uncollectible.Which of the following will be the amount of Uncollectible accounts expense?

• A) $7,000
• B) $3,450
• C) $2,250
• D) $2,850

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Definitions:

Responsive

Being quick to react or respond positively or supportively to stimuli or actions.

Romanian Children

Often refers to studies or discussions about the developmental outcomes of children from Romania, especially those who experienced institutional care.

Lower Intelligence Scores

Lower intelligence scores refer to below-average outcomes on tests designed to measure cognitive abilities and intellectual potential.

Orphanages

Residential institutions dedicated to the care of children whose parents are deceased or otherwise unable or unwilling to care for them.