Jumpin Corporation Uses the Percent-Of-Sales Method to Estimate Uncollectibles

question 64

Multiple Choice

Jumpin Corporation uses the percent-of-sales method to estimate uncollectibles.Net credit sales for the current year amount to $2,030,000,and management estimates 5% will be uncollectible.The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $1,300.The amount of Uncollectible-Account Expense reported on the income statement will be:

• A)$1,300.
• B)$100,200.
• C)$101,500.
• D)$102,800.

Understand the United States' policy toward Vietnam during the Truman and Eisenhower administrations.

Comprehend the Eisenhower administration's perception of and response to nationalist movements in the Third World.

Analyze the role of the CIA in the Third World during the Eisenhower administration.

Compare and contrast Eisenhower's reactions to the Arab-Israeli conflict and the Hungarian uprising.

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Definitions:

Receivables Period

The usual period a business needs to obtain payments from customers for goods or services sold on a credit basis.

Inventory Period

The time it takes for a company to turn its inventory into sales, often measured in days or weeks.

Cash Cycle

The period between the acquisition of inventory by a business and the collection of accounts receivable generated by the sale of that inventory.

Inventory Turnover

Inventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a particular period, indicating the efficiency of inventory management.