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

question 43

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 Allowance for uncollectible accounts?

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

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Definitions:

Incentives

Incentives are rewards or penalties that motivate individuals towards certain behaviors or actions.

Self-determination Theory

A psychological theory focused on motivation, which posits that people are driven to grow and change by three innate and universal psychological needs: autonomy, competence, and relatedness.

Universal Needs

Fundamental needs that are commonly considered essential for all humans, such as food, water, shelter, and safety.

Aesthetic Need

The human desire for beauty and visually pleasing experiences in their surroundings.