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:

Money Supply

Refers to the total amount of money available in an economy at a particular point in time, including cash and deposits.

Fed

The central banking system in the United States, known as the Federal Reserve System, is in charge of managing the country's monetary policy.

Open Market

A marketplace that is open to all participants and where goods, securities, currencies, and other items can be bought and sold.

Simple Money Multiplier

A formula used to determine the maximum amount of money that can be created by a bank's deposits under a fractional reserve banking system.