The General Ledger Account for Accounts Receivable Shows a Debit

question 65

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 entry to record the Uncollectible Accounts Expense would be

---

Definitions:

Purchase Decision Process

The five stages a buyer passes through in making choices about which products and services to buy; includes problem recognition, information search, alternative evaluation, purchase decision, and postpurchase behavior.

Buyer

An individual or organization that purchases goods or services for personal use or for further processing or for resale.

Services

Intangible offerings provided by businesses or individuals that involve a performance or action to satisfy the needs of a customer or client.

Consumer Behavior

The study of how individuals select, purchase, use, and dispose of goods and services, influenced by various personal and environmental factors.