Jumpin Corporation Uses the Percent-Of-Sales Method to Estimate Uncollectibles

question 159

Multiple Choice

Jumpin Corporation uses the percent-of-sales method to estimate uncollectibles.Net credit sales for the current year amount to $2,000,000,and management estimates 2% will be uncollectible.The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $1,000.The amount of Uncollectible-Account Expense reported on the income statement will be:

• A)$1,000.
• B)$39,000.
• C)$40,000.
• D)$41,000.

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Definitions:

Pleasure-Seeking

Pleasure-seeking involves pursuing activities or experiences that provide sensory satisfaction or enjoyment, often driven by biological and psychological needs.

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, or motives to another person.

Oedipus Complex

A concept in psychoanalytic theory describing a child's feelings of desire for their opposite-sex parent and jealousy and envy toward their same-sex parent.

Erogenous Zones

Areas of the body that experience heightened sensitivity and can lead to sexual arousal when stimulated.