Using the Percentage-Of-Sales Method, You Estimate That Total Uncollectible Accounts

question 43

Multiple Choice

Using the percentage-of-sales method, you estimate that total uncollectible accounts is $6,000. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $2,000. The amount of the adjusting entry for uncollectible accounts expense is:

• A)$8,000.
• B)$6,000.
• C)$4,000.
• D)$2,000.

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Definitions:

Subcooling

Term used to describe the additional cooling of A/C refrigerant in the bottom of the condenser after it has changed from vapor to liquid below its freeze point. In physics, this is known as supercooling.

A/C System

A system in vehicles and buildings designed to cool the air, improving comfort for occupants.

Low Pressure

Refers to situations where the pressure within a system or component is below the normal operating level, potentially indicating a problem.

High Pressure

Pertains to a condition where the pressure in a system or container is significantly above atmospheric pressure, often used in hydraulic or pneumatic systems.