Marr Co. had the following sales and accounts receivable balances, prior to any adjustments at year end Credit sales $10,000,000 Accounts receivable 3,000,000 Allowance for uncollectible accounts (debit balance). 50,000 Marr uses 3% of accounts receivable to determine its allowance for uncollectible accounts at year end. By what amount should Man adjust its allowance for uncollectible accounts at year end? A A. B. C. D. Calculator Ľ Time Value Tables 50 $40,000 $90,000 $140,000

Financial Accounting Intro Concepts Meth/Uses
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Chapter8: Revenue Recognition, Receivables, And Advances From Customers
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Marr Co. had the following sales and accounts receivable balances, prior to any adjustments at year end:
Credit sales
$10,000,000
Accounts receivable
3,000,000
Allowance for uncollectible accounts (debit balance)
50,000
Marr uses 3% of accounts receivable to determine its allowance for uncollectible accounts at year end. By what amount should Mar
adjust its allowance for uncollectible accounts at year end?
Calculator E
A Time Value Tables
A.
B.
C.
D.
50
$40,000
$90,000
$140,000
Transcribed Image Text:Marr Co. had the following sales and accounts receivable balances, prior to any adjustments at year end: Credit sales $10,000,000 Accounts receivable 3,000,000 Allowance for uncollectible accounts (debit balance) 50,000 Marr uses 3% of accounts receivable to determine its allowance for uncollectible accounts at year end. By what amount should Mar adjust its allowance for uncollectible accounts at year end? Calculator E A Time Value Tables A. B. C. D. 50 $40,000 $90,000 $140,000
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