Jefferson Uses the Percent of Sales Method of Estimating Uncollectible

question 11

Multiple Choice

Jefferson uses the percent of sales method of estimating uncollectible expenses. Based on past history, 2% of credit sales are expected to be uncollectible. Sales for the current year are $5,550,000. Which of the following is correct regarding the entry to record estimated uncollectible receivables?

• A) Cash will be debited.
• B) Bad Debt Expense will be credited.
• C) Allowance for Doubtful Accounts will be credited.
• D) Accounts Receivable will be debited.

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Definitions:

Mintzberg

Mintzberg refers to Henry Mintzberg, a renowned academic and author known for his work on business strategy, organizational structures, and management.

Managerial Roles

The specific behaviors and tasks that are expected of a manager, including planning, organizing, leading, and controlling.

Interpersonal

Relating to relationships or communication between people.

Decisional

Relating to or involving the process of making choices or decisions, especially in a managerial or organizational context.