The Following Information Is from the 2013 Records of Armadillo

question 150

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 aging-of-accounts-receivable method.Management estimates that $2,850 of accounts receivable will be uncollectible.Which of the following will be the balance of the Allowance for uncollectible accounts after adjustment?

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

---

Definitions:

Customer Benefit Plan

A strategy designed to outline the advantages or improvements a customer will receive from a product or service.

Marketing Plan

A comprehensive document or blueprint that outlines a company's advertising and marketing efforts for the coming period.

FAB

An acronym for Features, Advantages, and Benefits, a sales strategy that focuses on explaining a product's characteristics and the positive outcomes of using it.

Marketing Plan

A comprehensive document or strategy detailing the actions a company will undertake to promote and sell its products or services.