Using the Income Statement Approach for Accounting for Uncollectible Accounts,a

question 10

Multiple Choice

Using the income statement approach for accounting for uncollectible accounts,a company estimates that 2.5% of credit sales will eventually become uncollectible.If credit sales during the year are $400,000 and accounts receivable at the end of the year are $80,000,the adjustment for estimated uncollectible accounts will require a:

• A)Credit to Accounts Receivable for $2,000.
• B)Debit to Bad Debt Expense for $10,000.
• C)Debit to Allowance for Uncollectible Accounts for $10,000.

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Definitions:

XY

A sex chromosome combination present in males that determines male biological characteristics in humans.

Double-Helix

The structure of DNA, consisting of two strands that wind around each other like a twisted ladder.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Meiosis

The form of cell division in which each pair of chromosomes splits so that one member of each pair moves to the new cell. As a result, each new cell has 23 chromosomes.