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At the Beginning of 2017,Elixir,Inc

Question 147

Multiple Choice

At the beginning of 2017,Elixir,Inc.has the following account balances:
At the beginning of 2017,Elixir,Inc.has the following account balances: Bad Debts Expense $0 During the year,credit sales amounted to $800,000.Cash collected on credit sales amounted to $770,000,and $18,000 has been written off.At the end of the year,the company adjusted for bad debts expense using the percent-of-sales method and applied a rate,based on past history,of 2.5%.The ending balance in the Allowance for Bad Debts is ________. A) $7,000 B) $2,000 C) $8,250 D) $9,000
Bad Debts Expense $0
During the year,credit sales amounted to $800,000.Cash collected on credit sales amounted to $770,000,and $18,000 has been written off.At the end of the year,the company adjusted for bad debts expense using the percent-of-sales method and applied a rate,based on past history,of 2.5%.The ending balance in the Allowance for Bad Debts is ________.


A) $7,000
B) $2,000
C) $8,250
D) $9,000

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