Use This Information to Answer the Following Question

question 79

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 debit 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 accounts receivable aging method,the Allowance for Uncollectible Accounts balance (after adjustment) would be

• A)$14,500.
• B)$14,000.
• C)$13,500.
• D)$12,500.

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Definitions:

Crude Oil

An organic, unprocessed substance found in nature, made up of hydrocarbon deposits along with other organic matter, known as crude oil.

OPEC

The Organization of Petroleum Exporting Countries, an intergovernmental body aiming to coordinate and unify petroleum policies among member countries.

Tax

A required fiscal imposition or alternative form of charge levied on taxpayers by a governmental institution for the purpose of funding government activities and assorted public expenses.

Buyers

Buyers are individuals or entities that purchase goods or services in the marketplace.