Question: The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for Uncollectible Accounts has a credit balance of $1,000. Net sales for the year were $494,000. In the past, 2 percent of sales have proven uncollectible. An aging of Accounts Receivable accounts results in an estimate of $13,500 of Uncollectible Accounts. Using the percentage of net sales method, calculate the Allowance for Uncollectible Accounts balance after adjustment.
Question: The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for Uncollectible Accounts has a credit balance of $1,000. Net sales for the year were $494,000. In the past, 2 percent of sales have proven uncollectible. An aging of Accounts Receivable accounts results in an estimate of $13,500 of Uncollectible Accounts. Using the percentage of net sales method, calculate the Allowance for Uncollectible Accounts balance after adjustment.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 85APSA: Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto...
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