Question
49) At the beginning of the year, ABC Company's allowance for doubtful accounts had a credit balance of $15,000. During the year, ABC wrote off
49) At the beginning of the year, ABC Company's allowance for doubtful accounts had a credit balance of $15,000. During the year, ABC wrote off uncollectible accounts receivable of $23,000. ABC estimates that 2% of net credit sales become uncollectible. Credit sales during the year were $625,000 and sales discounts were $12,000. What is the end of year adjusted balance of the allowance for doubtful accounts?:
a. $4,260
b. $8,000
c. $12,260
d. $12,500
e. $20,260
50. X Company is deciding whether to retain its office telephone system or replace it with a new system. Which cost shouldNOTbe considered when making this decision?
a. Salvage value of current system
b. Cost of current system
c. Incremental cost
d. Sunk cost
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