Using the Percentage of Net Sales Method, Uncollectible Accounts Expense

question 166

Multiple Choice

Using the percentage of net sales method, uncollectible accounts expense for the year is estimated to be $54,000. If the balance of the Allowance for Uncollectible Accounts is an $18,000 credit before adjustment, what is the balance after adjustment?

• A) $72,000
• B) $38,000
• C) $54,000
• D) $18,000

Identify core Canadian values.

Distinguish between material and non-material culture.

Comprehend cultural universals and the complexity of cultural diversity.

Understanding the fundamental parties to checks and notes.

---

Definitions:

Recovery Phase

A stage in the economic cycle where economic activity picks up and GDP starts to rise again after a period of decline or recession.

Prosperity Phase

A stage of the business cycle in which economic activity is growing, leading to higher levels of employment, income, and production.

Recession Phase

is a period of temporary economic decline during which trade and industrial activities are reduced, typically identified by a fall in GDP in two successive quarters.

Recovery Phase

A stage in the economic cycle where activity begins to increase again after a period of recession or depression, marked by rises in employment, consumer spending, and production.