The General Ledger Account for Accounts Receivable Shows a Debit

question 2

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 Allowance for Uncollectible Accounts balance (after adjustment) would be

• A) $7,500.
• B) $10,000.
• C) $9,000.
• D) $6,000.

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Definitions:

Çatalhöyük

An ancient, large Neolithic and Chalcolithic proto-city settlement in southern Anatolia, notable for its unique architecture and cultural artifacts.

Early Cities

Urban centers that emerged in various parts of the world during ancient times, characterized by their significant populations, economic activities, and social complexities.

Bronze Age

A period in human history characterized by the use of bronze, proto-writing, and other early features of urban civilization, dating from around 3300 to 1200 BCE.