Mellon Corporation
the Data Presented Below Are for Mellon Corporation

question 70

Multiple Choice

Mellon Corporation
The data presented below are for Mellon Corporation for the year ended December 31,2017:
??
$\begin{array}{lr}\text { Sales (100\% on credit) } & \$ 1,500,000 \\\text { Sales returns } & 60,000 \\\text { Accounts receivable (December 31, 2017) } & 250,000 \\\text { Allowance for doubtful accounts (credit balance) (before adjustment at December } & \\31,2017 & 3,000 \\\text { Estimated amount of uncoll ectible accounts based on an aging analysis } & 31,000\end{array}$
-Refer to the data for Mellon Corporation. ?
If Mellon uses the aging of accounts receivable approach to estimate its bad debts,what amount will be reported as bad debts expense for 2017?

• A)$28,000
• B)$31,000
• C)$34,000
• D)$50,000

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Definitions:

Orphaned Customers

Customers who feel neglected or forgotten by a brand, often after a key salesperson leaves the company.

Direct Mail

A marketing strategy that involves sending advertising materials directly to prospects or customers through postal or electronic mail.

Salesperson

An individual who sells products or services on behalf of a company, often directly to customers.

Endless Chain Referral Method

A marketing strategy where existing customers are encouraged to refer new clients, potentially creating a continuous chain of referrals.