The Following Information Is from the 2017 Records of Robin

question 15

Multiple Choice

The following information is from the 2017 records of Robin Antique Shop: $\begin{array}{|l|r|}\hline\text { Accounts receivable, December } 31,2017 & \$ 44,000 \text { (debit) }\\\hline\text { Allowance for Bad Debts, December 31, } \\\text { prior to adjustment }& 1,100 \text { (debit) } \\\hline \text { Net credit sales for } 2017 & 176,000 \\\hline \text { Accounts written off as uncollectible during } & \\2017 & 11,000 \\\hline \text { Cash sales during } 2017 & 27,000\\\hline\end{array}$ Bad debts expense is estimated by the percent-of-sales method.Management estimates that 5% of net credit sales will be uncollectible.The ending balance of the Allowance for Bad Debts account after adjustment will be ________.

• A)$9,900
• B)$9,050
• C)$11,250
• D)$7,700

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Definitions:

Price of Oranges

The cost at which oranges are sold, affected by factors like supply, demand, seasonality, and production costs.

Rental Price of Apartments

The cost charged to tenants for leasing living space on a monthly or annual basis.

Property Taxes

Taxes levied on property owners based on the assessed value of their property, often used to fund local services and infrastructure.

Unexpected Increase

An unforeseen rise in a particular variable or metric, which could pertain to costs, prices, demand, or any other economic factor.