A Firm Reported Net Credit Sales of $450,000 During the Year

question 33

Multiple Choice

A firm reported net credit sales of $450,000 during the year and has a balance of $40,000 in its Accounts Receivable account at year-end.Prior to adjustments,Allowance for Doubtful Accounts has a debit balance of $200.The firm estimates its losses from uncollectible accounts to be one-half of 1 percent of net credit sales.The entry to record the estimated losses from uncollectible accounts will include a credit to Allowance for Doubtful Accounts for

• A) $4,500.
• B) $2,450.
• C) $2,250.
• D) $1,800.

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Definitions:

Borderline

Often used in the context of borderline personality disorder, referring to a condition characterized by difficulty in regulating emotions, unstable relationships, and self-image issues.

Millon Clinical Multiaxial Inventory

A psychological assessment tool designed to diagnose and plan treatment for a variety of psychological disorders, created by Theodore Millon.

Projective Personality

A psychological assessment technique in which subjects interpret ambiguous stimuli, revealing hidden emotions and internal conflicts.

Objective Personality

A classification or analysis of an individual's personality based on measurable or observable traits and characteristics without subjective judgement.