Use This Information to Answer the Following Question

question 150

Multiple Choice

Use this information to answer the following question. The general ledger account for Accounts Receivable shows a debit balance of $50,000.Allowance for Uncollectible Accounts has a credit balance of $1,000.Net sales for the year were $465,000.In the past,2 percent of sales have proved uncollectible,and an aging of accounts receivable accounts results in an estimate of $13,500 of uncollectible accounts.
Using the percentage of net sales method,the Allowance for Uncollectible Accounts balance (after adjustment) would be

• A) $8,300.
• B) $9,300.
• C) $10,300.
• D) $1,000.

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Definitions:

Secondary Intention

Wound closure in which the edges are separated; granulation tissue develops to fill the gap; and, finally, epithelium grows in over the granulation, producing a larger scar than results with primary intention.

Scar Tissue

Fibrous tissue that forms over a wound during the healing process, replacing normal skin or tissue that has been damaged.

Tissue Function

The specific physiological or pathological roles and activities performed by different types of body tissues in the overall operation of an organism.

Laparoscopic Appendectomy

A minimally invasive surgical procedure to remove the appendix using small incisions and a laparoscope.