Bigg and Talle Corporation Uses the Percentage-Of-Sales Method to Estimate

question 58

Multiple Choice

Bigg and Talle Corporation uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $5,000,000 and management estimates 2% will be uncollectible. Allowance for Doubtful Accounts prior to adjustment has a credit balance of $16,000. After all necessary adjusting entries are made, the balance in Allowance for Uncollectible Accounts will be:

• A)$116,000.
• B)$100,000.
• C)$ 84,000.
• D)$ 16,000.

Identify the correct tax form for individuals based on their income, filing status, and other financial circumstances.

Recognize the conditions and qualifications for various filing statuses, including qualifying widow(er), head of household, and dependent claims.

Calculate the standard deductions and tax liabilities for individuals based on their income and filing status.

Know the threshold for underpayment penalties and how to avoid them.

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Definitions:

Corporations

Legal entities that are separate from their owners, allowing them to own assets, incur liabilities, and conduct business in their own name.

Business Sales

The total receipts a company generates from selling its goods or services over a specific period of time.

Inheritance Laws

Legal rules and protocols that govern the distribution of an individual's estate upon their death.

Economic Equality

A state where all individuals in an economy have the same income and wealth levels, minimizing disparities.