Table 5 On December 31, Grubbs Company has the following account balances Accounts receivable Allowance for doubtful accounts Net credit sales $330,000 $33,000 $37.500 $28,500 $32,500 4,500 credit 1,500,000 Assume again that Grubbs estimates that 10% of accounts receivable will be uncollectible. Under the percentage of receivables method (balance sheet method) the balance in allowance for doubtful accounts after adjustment would be:
Table 5 On December 31, Grubbs Company has the following account balances Accounts receivable Allowance for doubtful accounts Net credit sales $330,000 $33,000 $37.500 $28,500 $32,500 4,500 credit 1,500,000 Assume again that Grubbs estimates that 10% of accounts receivable will be uncollectible. Under the percentage of receivables method (balance sheet method) the balance in allowance for doubtful accounts after adjustment would be:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Table 5
On December 31, Grubbs Company has the following account
balances
Accounts receivable
Allowance for doubtful accounts
Net credit sales
$330,000
$33,000.
$37,500
$28,500
$32,500
4,500 credit
1,500,000
Assume again that Grubbs estimates that 10% of accounts receivable will be uncollectible. Under
the percentage of receivables method (balance sheet method) the balance in allowance for
doubtful accounts after adjustment would be:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4547b1e0-f202-4b7c-a4bc-1b21f24da442%2F9b1d2e48-7f92-46e0-b99b-4f76106bc3ac%2F5mmg8yd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Table 5
On December 31, Grubbs Company has the following account
balances
Accounts receivable
Allowance for doubtful accounts
Net credit sales
$330,000
$33,000.
$37,500
$28,500
$32,500
4,500 credit
1,500,000
Assume again that Grubbs estimates that 10% of accounts receivable will be uncollectible. Under
the percentage of receivables method (balance sheet method) the balance in allowance for
doubtful accounts after adjustment would be:
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