Randall's Service Company Began Operations on January 1,2019

question 209

Multiple Choice

Randall's Service Company began operations on January 1,2019.The following Trial Balance was prepared on December 31,2019.Capital contributions during the year were $54,000.


What is the December 31,2019 balance of Retained Earnings?

• A)$33,100
• B)$19,300
• C)$20,500
• D)$25,500

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that is expected to become uncollectible.

Percent of Sales Method

A forecasting technique used in financial planning to estimate certain balance sheet and income statement accounts based on projected sales growth.

Bad Debts

Amounts owed to a company that are not expected to be received, often due to customers being unable to pay.

Income Statement

A financial document that reports a company's revenues, expenses, and net income over a specific period.