On January 1, 2014, the Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $35,000 and $550, respectively. During the year the company reported $85,000 of credit sales. There were $610 of receivables written off as uncollectible in 2014. Cash collections of receivables amounted to $84,490. The company estimates that it will be unable to collect one percent (1%) of credit sales. What will be the amount of uncollectible accounts expense recognized in the 2014 income statement?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4PA: Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The...
icon
Related questions
Question
100%

Financial Accounting

On January 1, 2014, the Accounts Receivable and the
Allowance for Doubtful Accounts carried balances of $35,000
and $550, respectively. During the year the company reported
$85,000 of credit sales. There were $610 of receivables written
off as uncollectible in 2014. Cash collections of receivables
amounted to $84,490. The company estimates that it will be
unable to collect one percent (1%) of credit sales. What will be
the amount of uncollectible accounts expense recognized in
the 2014 income statement?
Transcribed Image Text:On January 1, 2014, the Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $35,000 and $550, respectively. During the year the company reported $85,000 of credit sales. There were $610 of receivables written off as uncollectible in 2014. Cash collections of receivables amounted to $84,490. The company estimates that it will be unable to collect one percent (1%) of credit sales. What will be the amount of uncollectible accounts expense recognized in the 2014 income statement?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning