The Amount of Miscellaneous Revenues/Expense Appearing on Jay's 2019 Consolidated

question 61

Multiple Choice

The amount of Miscellaneous Revenues/Expense appearing on Jay's 2019 Consolidated Income Statement would be:

• A) $47,000.
• B) $47,600.
• C) $50,000.
• D)$53,000.

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Definitions:

Uncollectible Percentage

Estimate of the portion of accounts receivable that will not be collected, used in calculating bad debt expense.

Bad Debt Expense

An expense reported on the income statement, reflecting the cost of accounts receivable that a company does not expect to collect due to customers' inability to pay.

Aging of Accounts

A method used to categorize accounts receivable based on the length of time an invoice has been outstanding, often to identify potential collection issues.

Gross Price Method

An accounting method where inventory purchases are recorded at their gross price, without deducting any available cash discounts.