Sigma Reports Net Credit Sales of $400,000

question 17

Multiple Choice

Sigma reports net credit sales of $400,000.There is a credit balance of $1,000 in the Allowance for Doubtful Accounts.Uncollectible accounts are estimated to be 2.5% of net credit sales.Under the income statement approach,the adjusting entry would require a debit to Bad Debt Expense for:

• A)$10,000.
• B)$9,000.
• C)$ 9,975.
• D)some other number.

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Definitions:

Genus

A class or group of entities that share common characteristics, often used in biological classification to denote a category above species and below family.

American Cities

Urban areas within the United States, governed by local administrations and holding significant cultural, economic, and political importance.

Midwestern American Cities

Urban areas located in the Midwestern region of the United States, known for their diverse industries, cultural heritage, and historical significance.

Genus

In biology, a way to group together species that are closely related, showing the common attributes shared by the species within it.