At the Beginning of 2017,Elixir,Inc

question 147

Multiple Choice

At the beginning of 2017,Elixir,Inc.has the following account balances:

Bad Debts Expense $0
During the year,credit sales amounted to $800,000.Cash collected on credit sales amounted to $770,000,and $18,000 has been written off.At the end of the year,the company adjusted for bad debts expense using the percent-of-sales method and applied a rate,based on past history,of 2.5%.The ending balance in the Allowance for Bad Debts is ________.

• A)$7,000
• B)$2,000
• C)$8,250
• D)$9,000

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Definitions:

Public Policy

Principals and standards considered to be in the interests of the public and used as a guide for lawmaking.

Morally Reprehensible

Actions or behaviors that are considered extremely unacceptable by societal ethical standards.

Symbolic Interactionist

A practitioner or believer in symbolic interactionism, a theoretical perspective in sociology that focuses on how individuals interpret and give meaning to symbols in social interactions.

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