A Company Has Net Sales of $50,000 During the Year

question 1

Multiple Choice

A company has net sales of $50,000 during the year.At year end (before an adjustment is made) ,Allowance for Uncollectible Accounts has a credit balance of $2,500.If the company estimates that 3 percent of net sales are uncollectible,what is the balance in the allowance account after the year-end adjustment has been made using the percentage of net sales method?

• A)$1,500 debit balance
• B)$1,500 credit balance
• C)$4,000 credit balance
• D)$1,000 debit balance

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Definitions:

Rational Dialogue

A method of communication focused on reaching agreement and understanding through logical and reasoned conversation.

Irrational Dialogue

Conversations or inner monologues based on illogical or unrealistic thought processes, often contributing to psychological distress.

Shame Attacking

A therapeutic exercise meant to help individuals overcome shame by engaging intentionally in behavior that may provoke shame in a controlled manner.

REBT

Rational Emotive Behavior Therapy, a form of psychotherapy that helps individuals identify irrational beliefs and replace them with more rational ones.