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

---

Definitions:

Highly Aware

The state of being exceptionally conscious or cognizant of one's surroundings, information, or changes.

Attentive

The quality of being alert and paying close attention to details, showing consideration for the needs and feelings of others.

Present

Pertaining to the current time or moment; being in the place under consideration.

Future

The time or period that comes after the present, which has yet to occur and is unknown or uncertain.