The General Ledger Account for Accounts Receivable Shows a Debit

question 29

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 accounts receivable aging method,the Allowance for Uncollectible Accounts balance (after adjustment) would be

• A)$17,000.
• B)$20,000.
• C)$21,500.
• D)$23,000.

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Definitions:

Normal Faults

A geological fault in which the hanging wall moves down relative to the footwall, typically resulting from extensional forces.

Glacially Carved

Landforms shaped by the movement of glaciers, resulting in features such as U-shaped valleys and fjords.

Metamorphic Rocks

Rocks that have been transformed from their original state by heat, pressure, or chemically active fluids.

Differential Stress

Stress applied to a body in varying magnitudes in different directions, often leading to deformation.