The General Ledger Account for Accounts Receivable Shows a Debit $\begin{array}{ll}\text { Uncollectible Accounts Expense } & 6,000 \\\text { Allowance for Uncollectible Accounts } &&6,000\end{array}$

question 170

Multiple Choice

The general ledger account for Accounts Receivable shows a debit balance of $25,000.Allowance for Uncollectible Accounts has a credit balance of $1,500.Net sales for the year were $250,000.In the past,3 percent of sales have proved uncollectible,and an aging of accounts receivable resulted in an estimate of $10,000 of uncollectible accounts receivable. Using the percentage of net sales method,the entry to record the Uncollectible Accounts Expense is:

• A) \(\begin{array}{ll}
• \text { Uncollectible Accounts Expense } & 6,000 \\
• \text { Allowance for Uncollectible Accounts } &&6,000
• \end{array}\)
• B) \(\begin{array}{ll}
• \text { Uncollectible Accounts Expense } & 7,500 \\
• \text { Allowance for Uncollectible Accounts } &&7,500
• \end{array}\)
• C) \(\begin{array}{ll}
• \text { Uncollectible Accounts Expense } & 9,000 \\
• \text { Allowance for Uncollectible Accounts } &&9,000
• \end{array}\)
• D) \(\begin{array}{ll}
• \text { Uncollectible Accounts Expense } &10,000 \\
• \text { Allowance for Uncollectible Accounts } &&10,000
• \end{array}\)

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Definitions:

Divorced Parents

Individuals who have legally ended their marriage and are no longer living together as spouses, often involving arrangements for co-parenting if children are involved.

Cohabitation

The living arrangement in which an unmarried couple resides together in a long-term relationship that resembles a marriage.

Custody

The physical and legal responsibility of caring for children; assigned by a court for divorced or unmarried parents.

Instrumental Tasks

The practical physical tasks necessary to maintain family life.