At the Beginning of 2015,Elixir Inc

question 131

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 Bad Debts Expense would be ________.

• A)$20,000
• B)$40,000
• C)$28,000
• D)$27,000

---

Definitions:

Knowledge Of The Business

Understanding of the intricacies, market environment, competition, and inner workings of a specific business sector or company.

Innovating Business Strategies

Refers to the creation and implementation of new and unique strategies in business operations aimed at achieving competitive advantage and meeting changing market demands.

Hands-On

The term 'hands-on' refers to actively engaging in tasks rather than observing or directing, emphasizing practical experience and involvement.

Humility

A personal quality of modesty and respect for others, often seen as a virtue in leadership and personal relationships.