At the Beginning of 2019,Elliott Company Has the Following Account $\$ 44,000$

question 4

Multiple Choice

At the beginning of 2019,Elliott Company has the following account balances: Accounts Receivable $\$ 44,000$ (debit balance)
Allowance for Bad Debts $\$ 5000$ (credit balance) Bad Debts Expense $0
During the year,credit sales amounted to $850,000.Cash collected on credit sales amounted to $790,000,and $16,000 has been written off.At the end of the year,the company adjusted for bad debts expense using the percent-of-sales method and applied a rate,based on past history,of 2.5%.The ending balance in the Allowance for Bad Debts is ________.

• A) $5000
• B) $5250
• C) $8750
• D) $10,250

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Definitions:

Weights

In finance, weights often refer to the proportion of each component of a portfolio or fund, typically expressed as a percentage of the total.

Common Equity

The amount of ownership interest in a corporation, represented by common stock held by investors.

Preferred Shares

Type of equity security that offers dividends and other benefits before common stockholders are compensated, often with no voting rights.

Rate of Return

The rate of return is the percentage of gain or loss on an investment over a specified time period, comparing the initial investment cost to the final value.