At the Start of the Current Year, Minuteman Corporation Had

question 101

Multiple Choice

At the start of the current year, Minuteman Corporation had a credit balance in the Allowance for Impairment 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 Impairment with a credit balance of $8,200.
• C) Allowance for Impairment with a credit balance of $6,400.
• D) Uncollectible accounts expense of $5,600.

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Definitions:

Ultraviolet Radiation

A type of electromagnetic radiation with wavelengths shorter than visible light but longer than X-rays, capable of causing chemical reactions and damage to living organisms.

X-rays

A form of electromagnetic radiation with a wavelength shorter than that of UV rays, commonly used in medicine for imaging internal structures.

Myosin

Muscle protein making up the thick filaments in a sarcomere; it pulls actin to shorten the sarcomere, yielding muscle contraction. See also actin.

Insulin

Hormone, released by the pancreas, that serves to lower blood glucose levels by stimulating the uptake of glucose by cells, especially muscle and liver cells.