Gross Accounts Receivable Is $10,000

question 120

Multiple Choice

Gross Accounts Receivable is $10,000.Allowance for Doubtful Accounts has a credit balance of $200.Net sales for the year are $150,000.In the past,2% of sales had proved uncollectible.What would be the adjusted balance of the Allowance account under the income statement approach?

• A)$3,200
• B)$2,800
• C)$1,400
• D)$3,000

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Definitions:

Expected Rate

The anticipated return on an investment, factoring in the probability of various outcomes.

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points or investment returns.

Covariance

A measure of how two variables move together, indicating the direction of their relationship.

Correlation Coefficient

A numerical indicator that determines the intensity of the association between the relative changes of two variables.