A company has $235,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has a $7.590 credit balance. If the company estimates 5% of credit sales will be uncollectible, what will be amount of the journal entry to record estimated uncollectible accounts? O A. $4,160 O B. $7.590 OC. $19,340 OD. $11,750

A company has $235,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has a $7.590 credit balance. If the company estimates 5% of credit sales will be uncollectible, what will be amount of the journal entry to record estimated uncollectible accounts? O A. $4,160 O B. $7.590 OC. $19,340 OD. $11,750

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 7RE: McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made...

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