The General Ledger Account for Accounts Receivable Shows a Debit

question 111

Multiple Choice

The general ledger account for Accounts Receivable shows a debit balance of $50,000.Allowance for Uncollectible Accounts has a credit balance of $3,000.Net sales for the year were $500,000.In the past,3 percent of sales have proved uncollectible,and an aging of accounts receivable resulted in an estimate of $20,000 of uncollectible accounts receivable.
-Using the percentage of net sales method,the Allowance for Uncollectible Accounts balance (after adjustment) would be

• A)$12,000.
• B)$15,000.
• C)$18,000.
• D)$20,000.

---

Definitions:

Payment Split

The division of a total payment amount into smaller, individual payment parts, often used to manage cash flow or allocate funds to different purposes.

Written Agreement

A formal contract documented in writing between two or more parties outlining the terms and conditions of an agreement.

Purchasing

The process of acquiring goods, services, or works from an external source, often via a contract.

Investing Assets

Assets acquired for the purpose of generating income from investments rather than for use in the company's main business operations.