[The Following Information Applies to the Questions Displayed Below

question 58

Multiple Choice

[The following information applies to the questions displayed below.]

On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050.

-Which of the following correctly states the effect of recording the collection of the reestablished receivable on April 4,Year 2?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Mechanical Advantage

The ratio of the force produced by a machine to the force applied to it, used in mechanical systems to gain a greater output force from a smaller input force.

Teeth

Typically refers to the individual projections along the edge of a gear or similar component that mesh with those of another to transmit motion and force.

Geometric Tolerancing

A system that defines and specifies engineering tolerances based on geometric shapes and features, improving interchangeability and quality.

Circularity

A geometric tolerance that limits the deviation of an object’s form from being a perfect circle.