The Following Information Is from the 2020 Records of R

question 18

Multiple Choice

The following information is from the 2020 records of R & S Commercial Plumbing Company: $$\begin{array} { | l | l | } \hline \text { Accounts receivable, December 31, 2020 } & \$ 43,000 \text { (debit) } \\\hline \text { Allowance for Bad Debts, December 31,2020 prior to adjustment } & 1500 \text { (debit) } \\\hline \text { Net credit sales for 2020 } & 180,000 \\\hline \text { Accounts written off as uncollectible during 2017 } & 16,000 \\\hline \text { Cash sales during 2020 } & 26,000 \\\hline\end{array}$$ Bad debts expense is estimated by the percent-of-sales method.Management estimates that 6% of net credit sales will be uncollectible.Calculate the amount of bad debts expense for 2020.

• A) $10,800
• B) $8220
• C) $12,360
• D) $9300

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Definitions:

Axial Skeleton

Part of the vertebrate skeleton forming the vertical support or axis, including the skull, the rib cage, and the vertebral column.

Ribs

The curved bones which form the rib cage, surrounding the chest enabling lung expansion while protecting thoracic organs.

Fibrocartilage

Cartilage with a matrix of strong collagenous fibers.

Hyaline Cartilage

Hyaline cartilage is a translucent type of cartilage found in areas such as the nose, trachea, and at the ends of bones, providing smooth surfaces for movement at joints.