At the Beginning of 2014, Mark's Sales Had the Following

question 47

Multiple Choice

At the beginning of 2014, Mark's sales had the following ledger balances: During the year there were $450,000 of credit sales, $460,000 of collections, and $3,700 of write-offs. At the end of the year, Mark's adjusted for uncollectible account expense using the aging method, and calculated an amount of $1,600 as their estimate of uncollectible accounts. At the end of the year, what was the balance in the Allowance account?

• A)$1,600
• B)$1,700
• C)$6,400
• D)$2,700

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Definitions:

Earrings

Jewelry designed to be worn on the ears, available in various styles and materials.

Variable Input

An input whose quantity varies with production levels, affecting cost and output.

Marginal Cost

The added cost of producing one additional unit of a product or service.

Labor Costs

The total amount of money businesses have to pay to their employees for work done, including wages, salaries, and benefits.