Credit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 credit, accounts written off during the year were $2,200. It is estimated that 2% of all credit sales are eventually uncollectible. What is the Uncollectible Accounts Expense? The Uncollectible Accounts Expense should be $10,000. The Uncollectible Accounts Expense should be $9,700. The Uncollectible Accounts Expense should be $8,500. The Uncollectible Accounts Expense should be $8,800. None of these.
Credit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 credit, accounts written off during the year were $2,200. It is estimated that 2% of all credit sales are eventually uncollectible. What is the Uncollectible Accounts Expense? The Uncollectible Accounts Expense should be $10,000. The Uncollectible Accounts Expense should be $9,700. The Uncollectible Accounts Expense should be $8,500. The Uncollectible Accounts Expense should be $8,800. None of these.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Credit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 credit, accounts written off during the year were $2,200. It is estimated that 2% of all credit sales are eventually uncollectible. What is the Uncollectible Accounts Expense?
The Uncollectible Accounts Expense should be $10,000.
The Uncollectible Accounts Expense should be $9,700.
The Uncollectible Accounts Expense should be $8,500.
The Uncollectible Accounts Expense should be $8,800.
None of these.
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