The Following Information Is from the 2019 Records of Uptown

question 13

Multiple Choice

The following information is from the 2019 records of Uptown Antique Shop: $$\begin{array} { | l | r | } \hline \begin{array} { l } \text { Accounts receivable, December 31, 2019 } \\\text { Allowance for Bad Debts, December 31,2019 } \\\text { prior to adjustment }\end{array} & 1,500 \text { (debit) } \\\hline \text { Net credit sales for 2019 } & 180,000 \\\hline \begin{array} { l } \text { Accounts written off as uncollectible during } \\2019\end{array} & 11,000 \\\hline \text { Cash sales during 2019 } & 28,000 \\\hline\end{array}$$ Bad debts expense is estimated by the percent-of-sales method. Management estimates that 3% of net credit sales will be uncollectible. The ending balance of the Allowance for Bad Debts account after adjustment will be ________.

• A) $6,900
• B) $4,740
• C) $7,740
• D) $3,900

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Definitions:

Distribution Pattern

The spatial arrangement of organisms within a particular ecoy or habitat, influenced by environmental factors and species interactions.

Environmental Factor

An element of the physical or biological world that can influence the survival, development, or evolution of organisms.

Competition

An ecological interaction where individuals or species compete for limited resources, affecting their growth and survival.

Least Developed Countries

Countries recognized by the United Nations for their low socioeconomic development and human assets.