At the Beginning of 2015, Peter Dots Has the Following

question 102

Multiple Choice

At the beginning of 2015, Peter Dots has the following ledger balances: During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000 and $18,000 has been written off. At the end of the year, company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 2.5%. The ending balance in Bad Debts Expense would be:

• A)$20,000.
• B)$40,000.
• C)$28,000.
• D)$27,000.

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Definitions:

Intelligence Bases

Facilities or locations where intelligence agencies operate to collect, analyze, and process information relevant to national security.

Formosa Resolution

The Formosa Resolution was a measure passed by the U.S. Congress in 1955, authorizing the President to defend Taiwan (Formosa) against armed attack.

American Troops

Individuals serving in the United States Armed Forces, which encompasses the Army, Navy, Marine Corps, Air Force, and Coast Guard.

1955

The year 1955 is notable for several historical events, including the Montgomery Bus Boycott, which marked the beginning of the civil rights movement in the United States.