At the Start of the Current Year,Minuteman Corporation Had a Credit

question 129

Multiple Choice

At the start of the current year,Minuteman Corporation had a credit balance in the Allowance for Doubtful Accounts of $1,800.During the year a monthly provision of 2% of sales was made for uncollectible accounts.Sales for the year were $600,000,and $5,600 of accounts receivable were written off as worthless.No recoveries of accounts previously written off were made during the year.The year-end financial statements should show:

• A)Uncollectible accounts expense of $13,800.
• B)Allowance for Doubtful Accounts with a credit balance of $8,200.
• C)Allowance for Doubtful Accounts with a credit balance of $6,400.
• D)Uncollectible accounts expense of $5,600.

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Definitions:

Punishable

Describes an action or behavior subject to penalties or legal sanctions.

Second-degree Felony

A category of offense that is less severe than a first-degree felony but more severe than a third-degree felony, often involving significant harm or risk but with factors that mitigate the offender's culpability.

Imprisonment

The act of confining someone in a prison as a punishment for crimes they have been convicted of.

Punishable

Describing an action or offense that can be penalized by law, typically through fines, imprisonment, or other legal sanctions.