Sigma Reports Net Credit Sales of $400,000

question 17

Multiple Choice

Sigma reports net credit sales of $400,000.There is a credit balance of $1,000 in the Allowance for Doubtful Accounts.Uncollectible accounts are estimated to be 2.5% of net credit sales.Under the income statement approach,the adjusting entry would require a debit to Bad Debt Expense for:

• A)$10,000.
• B)$9,000.
• C)$ 9,975.
• D)some other number.

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Definitions:

Punishment

The imposition of a penalty or deprivation for wrongdoing, used as a method of discouraging undesirable behavior.

Effectiveness

The degree to which something achieves its intended outcome or results in a desired effect or impact.

Unpleasant Stimulus

A negative or harmful stimulus that causes discomfort or aversion.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed.