At January 1, Everbright Sales Has the Following Balances

question 161

Multiple Choice

At January 1, Everbright Sales has the following balances: During the year, Everbright has $150,000 of credit sales, collections of $140,000, and write-offs of $3,000. Everbright records Uncollectible accounts expense at the end of the year using the aging method. At the end of the year, the aging analysis produces a figure of $1,900, being the estimate of uncollectible accounts at end of year.
Before the year-end entry to adjust the Uncollectible accounts expense is made, what is the balance in the Uncollectible accounts expense?

• A)Debit of $1,400
• B)Credit of $1,944
• C)Zero balance
• D)Credit of $544

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Definitions:

Internet Technology

The use of interconnected computer networks to communicate, access information, and carry out other tasks through the internet.

Order Management Process

A systematic approach to managing and fulfilling sales orders, encompassing order receipt, processing, fulfillment, and after-sales service.

CRM Process

Customer Relationship Management process, involving strategies and technologies used by companies to manage and analyze customer interactions and data throughout the customer lifecycle.

Customer Relationships

The ongoing interactions and engagements a business has with its customers, aiming to foster loyalty and satisfaction.