[The Following Information Applies to the Questions Displayed Below

question 134

Multiple Choice

[The following information applies to the questions displayed below.]
Dynamic,Inc.had credit sales of $675,000 for March.Accounts receivable of $6,000 were determined to be worthless and were written off during March.Accounts receivable total $575,000 at March 31.Management feels that based on past experience,approximately 2% of net credit sales will prove to be uncollectible.
-Assuming Dynamic,Inc.uses the direct write-off method of accounting for uncollectible accounts,uncollectible accounts expense for March is:

• A)$13,500.
• B)$6,000.
• C)$11,500.
• D)$17,500.

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Definitions:

Demand Curves

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale.

Market Equilibrium

A condition in which the supply of a good matches demand, leaving neither surplus nor shortage in the market.

Environmental Indicators

Measurements, statistical data, and analysis used to represent the health of the environment, guide public policy, and inform the public.