The General Ledger Account for Accounts Receivable Shows a Debit

question 91

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 accounts receivable aging method, the Allowance for Uncollectible Accounts balance (after adjustment) would be

• A) $11,500.
• B) $10,000.
• C) $8,500.
• D) $10,750.

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Definitions:

Biceps Brachii

A muscle of the upper arm that functions to flex the elbow and rotate the forearm, comprised of two heads.

External Oblique

A muscle located in the abdomen that helps in rotating the trunk and flexing the spine.

External Oblique

A muscle located on the lateral and anterior parts of the abdomen, involved in the movement and support of the trunk.

Biceps Brachii

A muscle in the upper arm that helps in bending the elbow and rotating the forearm, consisting of two heads.