[The Following Information Applies to the Questions Displayed Below

question 103

Multiple Choice

[The following information applies to the questions displayed below.]
At the end of March,the unadjusted trial balance of Tutor,Inc.included the following accounts:

-Tutor uses the income statement approach in estimating uncollectible accounts expense,and uncollectible accounts expense is estimated to be 3% of credit sales.What is the amount of uncollectible accounts expense recognized in Tutor's income statement for March?

• A)$13,500.
• B)$18,000.
• C)$8,600.
• D)$7,200.

---

Definitions:

Dividends Paid

Dividends paid are the portion of a company's earnings distributed to its shareholders, typically in the form of cash payments or additional shares.

Dividend Payout Ratio

A financial ratio that shows the percentage of earnings a company pays to its shareholders in the form of dividends.

Internal Growth Rate

The maximum rate at which a company can expand its operations using only internally generated funds, without resorting to external financing.

ROE

Return on Equity is an indicator of a company's profitability, demonstrating the amount of profit generated from the shareholders' investments.