A Company Used the Percent of Sales Method to Determine

question 33

Multiple Choice

A company used the percent of sales method to determine its bad debts expense.At the end of the current year,the company's unadjusted trial balance reported the following selected amounts:
$$\begin{array} { | l | r | } \hline \text { Accounts receivable } & \$ 245,000 \text { debit } \\\hline \text { Allowance for uncollectible accounts } & 300 \text { credit } \\\hline \text { Net Sales } & 900,000 \text { credit } \\\hline\end{array}$$
All sales are made on credit.Based on past experience,the company estimates 0.5% of credit sales to be uncollectible.What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?

• A)$925
• B)$1,225
• C)$4,200
• D)$4,500
• E)$45,000

Identify strategies and technologies that facilitate effective virtual team interactions.

Understand the distinct listening skills and their applications, including active, empathetic, and critical listening.

Acknowledge the significance of nonverbal communication in conveying and understanding messages.

Learn techniques to improve listening skills and to become a more effective listener.

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Definitions:

Sick Role

The actions and attitudes that society expects from someone who is ill.

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Human Immunodeficiency Virus (HIV) is a virus that can lead to Acquired Immune Deficiency Syndrome (AIDS), a condition in humans in which progressive failure of the immune system allows life-threatening infections and cancers to thrive.

Contracted

The state of having entered into a formal agreement or compact, often legally binding, specifying conditions and terms of service, employment, or any other engagement.

Identified

Recognized or determined to be a specific person or thing based on certain characteristics or criteria.