Vine Company Began Operations on January 1,2013 $\$ 1,348,300$

question 149

Multiple Choice

Vine Company began operations on January 1,2013.During its first year,the company completed a number of transactions involving sales on credit,accounts receivable collections,and bad debts.These transactions are summarized as follows:
a. Sold $\$ 1,348,300$ of merchandise (that had cost $\$ 983,600$ ) on credit, terms $n / 30$ .
b. Wrote off $\$ 19,400$ of uncollectible accounts receivable.
c. Received $\$ 666,100$ cash in payment of accounts receivable.
d. In adjusting the accounts on December 31 , the company estimated that $2.90 \%$ of accounts receivable will be uncollectible
What is the amount required for the adjusting journal entry to record bad debt expense?

• A) $18,644.90
• B) $38,621.20
• C) $19,783.80
• D) $19,221.20
• E) $19,400.20

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Definitions:

Total Revenue

The total income generated by a business from the sale of goods or services, before any expenses are subtracted.

Available Suites

The number of accommodations or units that are ready for occupancy at any given time, typically used in hospitality or real estate context.

Integer Models

Mathematical models in operations research where the solution variables are required to be integers, often used in decision-making for optimal allocation and scheduling.

Continuous Nature

Characteristic of processes, functions, or variables that are uninterrupted and not discrete, allowing for an infinite number of possible values.