Osco Ltd Uses the Allowance Method of Accounting for Bad

question 12

Multiple Choice

Osco Ltd uses the allowance method of accounting for bad and doubtful debts. Bad and doubtful debts expense shown in the income statement is $10 000 and the amount of bad debts actually written off is $8 000. If sales are $220 000 and accounts receivable have increased by $12 000 over the period, the amount to be shown in the statement of cash flows for receipts from customers is:

• A) $200 000
• B) $210 000
• C) $220 000
• D) $240 000

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Definitions:

Maintenance Activity

An action taken by a team member that supports the emotional life of the team.

Maintenance Activities

Tasks or operations carried out to keep equipment, facilities, or systems operational and in good working condition.

Gatekeeping

The process by which information is filtered for dissemination, whether for publication, broadcasting, the Internet, or some other mode of communication.

Centralized Network

A network structure where a central node has direct connections to all other nodes, promoting efficiency and control but potentially limiting flexibility.