Question
20. When a transaction is wholly or partially recorded incorrectly, it is called A. Error of commission B. Error of principle C. Error of
20. When a transaction is wholly or partially recorded incorrectly, it is called A. Error of commission B. Error of principle C. Error of omission D. Error of posting 21. If no distinction between capital and revenue expenditures is made while a recording transaction, it is A. Compensating error B. Error of principle C. Error of omission D. Error of posting 22. In 2018 Wilkinson Company had net credit sales of $2,250,000. On January 1, 2018, Allowance for Doubtful Accounts had a credit balance of $54,000. During 2018, $90,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $600,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2018? A. $ 60,000 B. $ 25,000 C. $ 96,000 D. $ 90,000
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