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At the Beginning of 2015,Elixir Inc

question 134

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At the beginning of 2015,Elixir Inc.has the following ledger balances: 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 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 ________.


Definitions:

Soil Covered

The top layer of the earth's surface composed of mineral particles, organic matter, water, and air, which supports plant life.

Desertification

The process by which fertile land becomes desert, typically as a result of drought, deforestation, or inappropriate agriculture.

Soil Erosion

The process by which soil is removed from the land surface by wind or water flow, often exacerbated by human activity, leading to diminished land fertility.

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