Chez Fred Bakery Estimates the Allowance for Uncollectible Accounts at 3

question 162

Multiple Choice

Chez Fred Bakery estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2013, Chez Fred's credit sales and collections were $125,000 and $131,000, respectively. What was the balance of accounts receivable on January 1, 2013, if $180 in accounts receivable were written off during 2013 and if the allowance account had a balance of $750 on December 31, 2013?

• A)$5,820.
• B)$31,000.
• C)$31,180.
• D)None of the above is correct.

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Definitions:

Halite

Also known as rock salt, it is a mineral composed primarily of sodium chloride and forms through the evaporation of saline waters.

Water Molecule

A chemical entity consisting of one oxygen and two hydrogen atoms, connected by covalent bonds, essential for most forms of life.

Electronegativity

A measure of an atom's ability to attract and hold electrons within a chemical bond.

Cations

Positively charged atoms.