The following information is from the 2025 records of Uptown Antique Shop: Accounts receivable, December 31, 2025 $41,000 (debit) Allowance for Bad Debts, December 31, 2025 prior to adjustment 1,500 (debit) Net credit sales for 2025 175,000 Accounts written off as uncollectible during 2025 15,000 Cash sales during 2025 24,000 Bad debts expense is estimated by the percent−of−sales method. Management estimates that 3% of net credit sales will be uncollectible. The ending balance of the Allowance for Bad Debts account after adjustment will be ________. A. $4,470 B. $7,470 C. $6,750 D. $3,750
The following information is from the 2025 records of Uptown Antique Shop: Accounts receivable, December 31, 2025 $41,000 (debit) Allowance for Bad Debts, December 31, 2025 prior to adjustment 1,500 (debit) Net credit sales for 2025 175,000 Accounts written off as uncollectible during 2025 15,000 Cash sales during 2025 24,000 Bad debts expense is estimated by the percent−of−sales method. Management estimates that 3% of net credit sales will be uncollectible. The ending balance of the Allowance for Bad Debts account after adjustment will be ________. A. $4,470 B. $7,470 C. $6,750 D. $3,750
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following information is from the 2025 records of Uptown Antique Shop:
Accounts receivable, December 31, 2025
|
$41,000
(debit) |
Allowance for Bad Debts, December 31, 2025
prior to adjustment
|
1,500
(debit) |
Net credit sales for 2025
|
175,000
|
Accounts written off as uncollectible during 2025
|
15,000
|
Cash sales during 2025
|
24,000
|
percent−of−sales
method. Management estimates that
3%
of net credit sales will be uncollectible. The ending balance of the Allowance for Bad Debts account after adjustment will be ________.$4,470
$7,470
$6,750
$3,750
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