Use This Information to Answer the Following Question

question 126

Multiple Choice

Use this information to answer the following question. The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for Uncollectible Accounts has a credit balance of $1,000. Net sales for the year were $500,000. In the past, 2 percent of sales have proved uncollectible, and an aging of accounts receivable accounts results in an estimate of $10,700 of uncollectible accounts.
Using the accounts receivable aging method, the Allowance for Uncollectible Accounts balance (after adjustment) would be

• A) $9,700.
• B) $11,200.
• C) $10,700.
• D) $11,700.

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Definitions:

Immigration Status

The legal position or condition of a person in regard to their right to enter or reside in a country.

All-Male Military Schools

Educational institutions exclusively for male students with a curriculum focused on military training and discipline.

Public Funds

Money collected by the government from taxes or other sources intended for public expenditure on services and infrastructure.

Unconstitutional

Referring to actions, laws, or policies that are deemed to violate the principles or provisions of a constitution, particularly that of a nation or state.