Uri Ltd Uses the Allowance Method of Accounting for Bad

question 18

Multiple Choice

Uri Ltd uses the allowance method of accounting for bad and doubtful debts. Bad and doubtful debts expense shown in the income statement is $7000 and the amount of bad debts actually written off is $5000. If sales are $330 000 and customer's balances have increased by $15 000 over the period, calculate the amount to be shown in the statement of cash flows for receipts from customers.

• A) $330 000
• B) $320 000
• C) $310 000
• D) $315 000

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Definitions:

Equilibrium Wage

The salary level where the demand for labor from employers matches the supply of labor from workers.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs to inputs in a production process.

Human Capital

The competencies, insights, and background that an individual or community has, assessed based on their economic value or cost to an organization or country.

Experience

The knowledge or skill obtained from involvement in or exposure to events, activities, or specific fields of work or study.