Use This Information to Answer the Following Question

question 88

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 percentage of net sales method,the Allowance for Uncollectible Accounts balance (after adjustment) would be

• A)$8,880.
• B)$9,880.
• C)$10,880.
• D)$1,000.

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Definitions:

Troposphere

The lowest layer of the Earth's atmosphere, where most weather phenomena occur.

Stratosphere

The layer of the Earth's atmosphere located above the troposphere and below the mesosphere, characterized by a slight temperature increase with altitude and the presence of the ozone layer.

Unhealthy Air

Air that is contaminated with pollutants at levels which are harmful to human health and the environment.

Urban Areas

Regions characterized by high human population density and vast human-built features in comparison to the areas surrounding them.