At the Beginning of 2016,Peter Dots Has the Following Ledger

question 54

Multiple Choice

At the beginning of 2016,Peter Dots has the following ledger balances:
Accounts receivable

Allowance for doubtful debts

Bad debts expense

During the year,credit sales amounted to $810,000.Cash collected on credit sales amounted to $790,000 and $16,000 was written off.At the end of the year,the company adjusted for bad debts expense using the percentage of sales method and applied a rate,based on past history,of 3.5%.The ending balance in Bad debts expense would be:

• A) $57,540
• B) $28,350
• C) $16,000
• D) $20,350

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Definitions:

Apices of Lungs

The uppermost parts of the lungs, situated near the clavicle (collarbone).

Clavicles

Long, thin bones that serve as a strut between the shoulder blade and the sternum or breastbone, commonly referred to as collarbones.

Midclavicular Line

An imaginary vertical line that runs through the midpoint of the clavicle in a person's anatomical position.

Nasal Flaring

The widening of the nostrils during breathing, often seen as a sign of respiratory distress or increased effort to breathe.