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:

Reasonable Value

The fair or market value of goods or services, used when a contract does not specify a price or when damages are assessed.

Necessary

Something essential or required in a particular situation, condition, or for a specific purpose.

Severely Intoxicated

A state of being under the influence of alcohol or drugs to a degree that significantly impairs one's mental and physical functions.

Disaffirmed

The act of denying, refusing to recognize, or invalidating an agreement or contract, especially in cases where one party lacks the capacity to enter into the agreement.