The Following Information Is from the 2015 Records of Armand

question 11

Multiple Choice

The following information is from the 2015 records of Armand Camera Shop:
- Bad debts expense is estimated by the percent-of-sales method.Management estimates that 3% of net credit sales will be uncollectible.The balance of the Allowance for Bad Debts account after adjustment will be ________.

• A)$7,000
• B)$3,450
• C)$2,850
• D)$3,750

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Definitions:

Tangible Attributes

The physical features of a product that can be sensed by touch, sight, taste, smell, or hearing, distinguishing it from intangible qualities.

Durable Goods

Products that are intended to last for a significant amount of time, such as appliances, cars, and furniture, as opposed to consumer goods which are consumed quickly.

Nondurable Goods

Products with a limited lifespan, intended for consumption or use over a short period, such as food or paper products.