A Company Uses the Percent of Sales Method to Determine

question 56

Multiple Choice

A company uses the percent of sales method to determine its bad debts expense.At the end of the current year,the company's unadjusted trial balance reported the following selected amounts: All sales are made on credit.Based on past experience,the company estimates that 0.6% of net credit sales are uncollectible.What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?

• A)$1,275
• B)$1,775
• C)$1,500
• D)$1,080
• E)$2,500

---

Definitions:

Group-level Characteristics

Traits or features that are shared by members of a group, influencing the group's behavior, dynamics, and outcomes.

Individual Characteristics

Unique attributes, traits, and behaviors that differentiate one person from another.

Effective Counselors

These are professionals in counseling who demonstrate skills and competencies that effectively address the needs of their clients.

Intellectual Abilities

The capacity to perform mental activities such as reasoning, planning, problem-solving, abstract thinking, comprehending complex ideas, learning quickly, and learning from experience.