The Following Information Pertains to Lightning Inc A)$600
B)$1,000

question 63

Multiple Choice

The following information pertains to Lightning Inc. ,at the end of the year: Lightning uses the percentage-of-credit-sales method and estimates 1% of sales are uncollectible.What is the ending balance of the allowance account after the year-end adjustment?
$$\begin{array} { | l | r | l | } \hline \text { Credit Sales } & \$ 60,000 & \\\hline \text { Accounts Payable } & 10,000 & \\\hline \text { Accounts Receivable } & 7,000 & \\\hline \begin{array} { l } \text { Allowance for Uncollectible } \\\text { Accounts }\end{array} & 400 & \text { credit } \\\hline \text { Cash Sales } & 20,000 & \\\hline\end{array}$$

• A)$600.
• B)$1,000.
• C)$200.

Appreciate the influence of advertising strategies on consumer behavior and attitudes.

Understand the significance of research studies in the development of persuasion theory.

Identify ethical considerations in persuasive communications.

Understand the effectiveness and limitations of fear-based messages in persuasion.

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Definitions:

Variable Expenses

Costs that change in proportion to the level of business activity or production volume.

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, remaining constant over a period.

Target Profit

The desired financial gain a company aims to achieve within a specific period through its operations and sales.

Fixed Expense

Charges that stay unchanged with shifts in the amount of products made or the number of sales.