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

question 8

Multiple Choice

At January 1,Davidson Services has the following balances: Davidson has the following transactions during January: Credit sales of $80,000,collections of $76,000,and write-offs of $12,000.
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Davidson uses the direct write-off method.At the end of January,the balance in Uncollectible accounts expense is:

• A) $16,000.
• B) $4,000.
• C) $12,000.
• D) $28,000.

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Definitions:

Cash Dividends

Payments made by a company to its shareholders out of its profits or reserves.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific time, detailing assets, liabilities, and equity.

Net Income

The amount of money that remains after all expenses, including taxes and costs of goods sold, have been subtracted from total revenue, indicating the profitability of a company.

Financing Activities

refers to transactions related to raising capital and repaying shareholders, including issuing shares, borrowing, and repaying debt.