Use This Information to Answer the Following Question

question 88

Multiple Choice

Use this information to answer the following question. The general ledger account for Accounts Receivable shows a debit balance of $50,000.Allowance for Uncollectible Accounts has a credit balance of $1,000.Net sales for the year were $500,000.In the past,2 percent of sales have proved uncollectible,and an aging of accounts receivable accounts results in an estimate of $13,500 of uncollectible accounts.
-Using the percentage of net sales method,the Allowance for Uncollectible Accounts balance (after adjustment) would be

• A)$8,880.
• B)$9,880.
• C)$10,880.
• D)$1,000.

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Definitions:

Visual Receptors

Cells located in the retina of the eye that are responsible for converting light into neural signals which enable vision.

Gate Theory Of Pain

A theory suggesting that the spinal cord contains a neurological "gate" that either blocks pain signals or allows them to continue on to the brain, influenced by physical, emotional, and cognitive factors.

Pain Messages

Signals transmitted through the nervous system that indicate injury, strain, or potential damage to the body.

Gestalt Psychology

A theory of mind and brain, proposing that the operational principle of the brain is holistic, parallel, and analog, with self-organizing tendencies.