Jensen Corporation Uses the Percentage-Of-Sales Method to Estimate Uncollectibles

question 68

Multiple Choice

Jensen Corporation uses the percentage-of-sales method to estimate uncollectibles.Net credit sales for the current year amount to $2,010,000 and management estimates 3% will be uncollectible.The Allowance for Doubtful Accounts prior to adjustment has a debit balance of $18,000.After all adjusting entries are made,the balance in Allowance for Uncollectible Accounts will be:

• A)$18,000.
• B)$18,540.
• C)$42,300.
• D)$60,300.

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Definitions:

Shared Ancestry

The common evolutionary origin of two or more species, which is reflected in their genetic material.

Ideal Free Distribution

A theory in ecology that predicts how animals distribute themselves among habitats to maximize their fitness, assuming individuals are free to choose and are perfectly informed.

Habitats

The natural environments or places where a particular species lives and grows; it is crucial for the survival of species.

Fitness

In evolutionary terms, the ability of an organism to survive and reproduce, thus passing on its genes to the next generation.