At the Beginning of 2015, Peter Dots Has the Following

question 129

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, the 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 of Accounts Receivable would be:

• A)$40,000.
• B)$62,000.
• C)$80,000.
• D)$18,000.

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Definitions:

Human Communication

The interaction and sharing of messages or information among people through various verbal or non-verbal methods.

Inescapable

Impossible to avoid or evade; unavoidably present or compulsory.

Interpersonal Communication

The process by which people exchange information, feelings, and meaning through verbal and non-verbal messages in face-to-face settings.

Implicit Rules

Unspoken, unwritten expectations and norms that govern behavior in groups and societies.