At the Beginning of 2015,Elixir Inc

question 134

Multiple Choice

At the beginning of 2015,Elixir Inc.has the following ledger balances: During the year,credit sales amounted to $800,000.Cash collected on credit sales amounted to $760,000 and $18,000 has been written off.At the end of the year,company adjusted for bad debts expense using the percent-of-sales method and applied a rate,based on past history,of 2.5%.
-The ending balance in the Allowance for Bad Debts would be ________.

• A)$5,000
• B)$6,500
• C)$6,400
• D)$7,000

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Definitions:

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.

Dishabituation

The renewal of response or attention to a stimulus after habituation has occurred, typically due to the introduction of a new or changed stimulus.

Metamemory

Knowledge about memory.

General Knowledge

Information on a wide range of subjects that is acquired through education and experience, not specialized in any specific field.