# Doer Company reports year-end credit sales in the amount of $390,000 and accounts receivable of$85,500. Doer uses the income statement method to report bad debt estimation. The estimation percentage is 3.5%. What is the estimated balance uncollectible using the income statement method? A. $13,650 B.$2,992.50 C. $136,500 D.$29,925

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

#### Solutions

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Section
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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 9, Problem 6MC
Textbook Problem
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## Doer Company reports year-end credit sales in the amount of $390,000 and accounts receivable of$85,500. Doer uses the income statement method to report bad debt estimation. The estimation percentage is 3.5%. What is the estimated balance uncollectible using the income statement method?A. $13,650B.$2,992.50C. $136,500D.$29,925

To determine

Concept introduction:

Percent of sales method:

Bad debts expense can be recognized with several methods. Percent of sales is one of those methods. Under this method, the bad debts expense is calculated as a percentage of sales.

To choose:

The amount of estimated balance uncollectible.

### Explanation of Solution

The amount of estimated balance uncollectible is calculated as follows:

Credit Sales = \$390,000

Estimated balance unco...

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