The account that is credited with amounts withheld from an employee's earnings for any pension plan contribution is
a. Pension Plan Expense.
b. Pension Plan Taxes Payable.
c. Miscellaneous Expense.
d. Pension Plan Deductions Payable.
Question 2
KayCo began business January 1, 2012. During 2012, sales were 650,000. The year-end accounts receivable balance was 104,000. The company estimates that 1.5 of sales will become bad debts.
The financial statements for the year ended December 31, 2012 will show ________.
A) bad debts expense of 1,560 on the income statement
B) bad debts expense of 9,750 on the income statement
C) net accounts receivable of 94,250 on the income statement
D) bad debts expense of 1,560 on the balance sheet
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