On Average,5% of Credit Sales Has Been Uncollectible in the Past.At

question 11

Multiple Choice

On average,5% of credit sales has been uncollectible in the past.At the end of the year,the balance of accounts receivable is $100,000 and the allowance for doubtful accounts has a credit balance of $500.Net credit sales during the year were $150,000.Using the percentage of credit sales method,the estimated bad debt expense would be:

• A)$5,000.
• B)$7,000.
• C)$7,500.
• D)Cannot be determined; the percent of credit sales method cannot be used, as the information provided can only be used for calculating the aging of accounts receivable method.

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Definitions:

Focal Object

An object, idea, or event that draws attention and becomes central to interpersonal evaluations or organizational processes.

Perception Influences

The impact that an individual’s viewpoint has on their understanding and interpretation of information or events.

Work Ethic

A set of values based on the ideals of discipline and hard work, reflecting an individual's attitude towards their job and responsibilities.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.