Oceanside Company Uses the Balance Sheet Approach in Estimating Uncollectible

question 187

Multiple Choice

Oceanside Company uses the balance sheet approach in estimating uncollectible accounts expense. It has just completed an aging analysis of accounts receivable at December 31, 2009. This analysis disclosed the following information? What is the appropriate balance for Oceanside's Allowance for Doubtful Accounts at December 31, 2009

• A) $95,000.
• B) 2% of credit sales in 2009.
• C) $1,560.
• D) $2,160.

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Definitions:

Hepatopancreatic Ampulla

Dilation within the major duodenal papilla that normally receives both the common bile duct and the main pancreatic duct.

Pancreatic Duct

Excretory duct of the pancreas that extends through the gland from tail to head, where it empties into the duodenum at the greater duodenal papilla.

Common Bile Duct

Duct formed by the union of the common hepatic and cystic ducts; it empties into the small intestine.

Nutrient Absorption

The process by which the digestive system absorbs essential nutrients from food into the bloodstream.