At December 31,Gill Co

question 20

Multiple Choice

At December 31,Gill Co.reported accounts receivable of $238,000 and an allowance for uncollectible accounts of $600 (credit) .An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable.The amount of the adjustment for uncollectible accounts would be:

• A)$6,540.
• B)$7,800.
• C)$7,140.
• D)$7,740.

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Definitions:

Low-Context Culture

A culture in which a written agreement, such as a contract, can be taken at face value.

Illustrators

In communication, illustrators are gestures that accompany speech to clarify or emphasize the spoken words.

Nonverbal Punctuation

The use of body language and facial expressions to emphasize or clarify the spoken message, functioning similarly to punctuation in written language.

Nonverbal Communication

The transmission of information or feelings between individuals through behaviors and cues that are not words, such as eye contact, tone of voice, and proximity.