At the Beginning of 2015, Peter Dots Has the Following

question 25

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%.
-Refer to the table above,The ending balance in the Allowance for Bad Debts would be:

• A) $5,000.
• B) $6,500.
• C) $6,400.
• D) $7,000.

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Definitions:

Breakdown Theory

Suggests that social movements emerge when traditional norms and patterns of social organization are disrupted.

Nonroutine Collective Action

Spontaneous, unstructured group actions that occur in response to unforeseen events or crises, often bypassing traditional organizational structures.

Economic Deprivation

A state of being in which individuals or communities lack adequate financial resources, leading to poverty and restricted access to necessities.

Lynching

The illegal execution of an individual by a mob, often by hanging, typically without a lawful trial, historically used as a tool of racial oppression.