Use This Information to Answer the Following Question

question 55

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 $13,500 of uncollectible accounts.
Using the accounts receivable aging method, the Allowance for Uncollectible Accounts balance (after adjustment) would be

• A) $14,500.
• B) $14,000.
• C) $13,500.
• D) $12,500.

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Definitions:

Personal Identification Number

A numeric password used to secure and access personal accounts, typically associated with banking or secure systems.

Proactive Interference

Proactive interference occurs when old information hinders the recall of newly learned information, reflecting a limitation in human memory processing.

Personal Identification Number

A unique numeric password used to secure access to a device or system, often associated with banking and security systems.

Old PIN

Traditionally, this refers to a previously used Personal Identification Number, often associated with secure access systems.