A company has the following account balances at the end of the year:• Credit Sales = $400,000• Accounts receivable = $80,000• Allowance for Uncollectible Accounts = $400 debitThe company estimates future uncollectible accounts to be 4% of accounts receivable. At what amount would Bad Debt Expense be reported in the current year’s income statement? a. $400.b. $2,800.c. $3,200.d. $3,600.
A company has the following account balances at the end of the year:• Credit Sales = $400,000• Accounts receivable = $80,000• Allowance for Uncollectible Accounts = $400 debitThe company estimates future uncollectible accounts to be 4% of accounts receivable. At what amount would Bad Debt Expense be reported in the current year’s income statement? a. $400.b. $2,800.c. $3,200.d. $3,600.
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 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...
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A company has the following account balances at the end of the year:
• Credit Sales = $400,000
•
• Allowance for Uncollectible Accounts = $400 debit
The company estimates future uncollectible accounts to be 4% of accounts receivable. At what amount would
a. $400.
b. $2,800.
c. $3,200.
d. $3,600.
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