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.

Determine how firms leverage global business environments for competitive advantage.

Understand the concept and application of unobtrusive measures in research.

Recognize the characteristics of a good theory in psychology.

Understand the difference between theories and hypotheses in research.

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Definitions:

Contribution Format Income Statement

An income statement format that separates fixed costs from variable costs, thus showing the contribution margin.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales, indicating how revenue growth translates into growth in operating income.

Variable Expenses

Costs that change in proportion to the level of business activity or production volume.

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, remaining constant over a period.