Using the Information Below from the Accounting Records of Thomas

question 89

Multiple Choice

Using the information below from the accounting records of Thomas Corporation,owners' claims to the company's resources amount to: $$\begin{array} { l r } \text { Assets } & \$ 1,200,000 \\\text { Liabilities } & \$ \$ 00,000 \\\text { Net incorne } & \$ 100,000 \\\text { Retained earmings } & \$ 250,000\end{array}$$

• A)$1,200,000.
• B)$800,000.
• C)$250,000.
• D)$400,000.

---

Definitions:

Collection Efforts

Activities undertaken by a business or organization to pursue and receive payments owed by customers or clients.

Reversing Entries

Journal entries usually made at the beginning of an accounting period to reverse or cancel out adjusting entries from the end of the previous period.

Allowance Method

An accounting technique used to anticipate and adjust for potential future losses from uncollectible accounts receivable.

Uncollectible Accounts

Accounts receivable that are recognized as not being collectible, leading to a write-off as a bad debt expense.