The Following Accounts Were Taken from the Adjusted Trial Balance

question 85

Multiple Choice

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Net income for the period is

• A) $3,200
• B) $12,100
• C) $17,400
• D) $8,900

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Definitions:

Receivable

Funds that customers owe to a business for products or services already provided but not yet compensated for.

Bad Debt Reserve

An account set aside by a business to cover unpaid debts that are unlikely to be recovered.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Deductions

Items of expenditure that the tax code allows taxpayers to deduct from income to arrive at taxable income.