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

---

Definitions:

Emotional Attachment

A strong emotional bond that forms between individuals, often characterized by feelings of affection, concern, and dependency.

Cultural Diversity

refers to the variety of cultural or ethnic groups within a society, embracing different traditions, languages, and experiences.

Ideas

Mental concepts or propositions held to be true by an individual or group.

Traditions

Beliefs or behaviors passed down within a group or society with symbolic meaning or special significance, often celebrated or practiced over a long period.