Vine Company Began Operations on January 1,2010 $\$ 1,348,300$

question 157

Multiple Choice

Vine Company began operations on January 1,2010.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 $\mathrm{n} / 30$ .
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)$39,100.70
• C)$19,783.80
• D)$19,221.20
• E)$19,400.20

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Definitions:

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.

Real Property

Land and anything permanently attached to it, such as buildings, also including rights and interests associated with the land.

Personal Property

Movable assets or belongings, excluding real estate, owned by an individual or entity.

Common Carriers

Companies or entities that provide transportation services to the public under the authorization or regulation of a governmental body.