2 At December 31, the company had account balances in Accounts Receivable of $50,000 and in |Allowance for Uncollectible Accounts (AUA) of $300 (credit) before any adjustments. An analysis of the company's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. After the adjusting entry, what is the balance in the AUA account?
2 At December 31, the company had account balances in Accounts Receivable of $50,000 and in |Allowance for Uncollectible Accounts (AUA) of $300 (credit) before any adjustments. An analysis of the company's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. After the adjusting entry, what is the balance in the AUA account?
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 5E
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What the answer for 2 because it’s not 2,200 or 2,800
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