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 proved uncollectible, a nd an aging of accounts receivable accounts results in an estimate of $13,500 of uncollectible accounts. Using the percentage of net sales method, the Allowance for Uncollectible Accounts balance (after adjustment) would be:a) $8,880b) $9,880c) $10,880d) $1,000
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 proved uncollectible, a nd an aging of accounts receivable accounts results in an estimate of $13,500 of uncollectible accounts. Using the percentage of net sales method, the Allowance for Uncollectible Accounts balance (after adjustment) would be:a) $8,880b) $9,880c) $10,880d) $1,000
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...
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![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 proved uncollectible, a
nd an aging of accounts receivable accounts results in an estimate of $13,500 of uncollectible accounts.
Using the percentage of net sales method,
the Allowance for Uncollectible Accounts balance (after adjustment) would be:a) $8,880b) $9,880c) $10,880d) $1,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6de41307-715f-444a-b5c3-248eb786bf6e%2F4c417b27-3d2f-4d94-9efe-c2f818873b2d%2F2y3x3fg_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 proved uncollectible, a
nd an aging of accounts receivable accounts results in an estimate of $13,500 of uncollectible accounts.
Using the percentage of net sales method,
the Allowance for Uncollectible Accounts balance (after adjustment) would be:a) $8,880b) $9,880c) $10,880d) $1,000
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