The following information is taken from the annual report of The Lincoln Electric Company.

Calculate the ratio of the allowance for uncollectible accounts divided by gross accounts receivable for 2014 and 2015. Did this ratio increase from 2014 to 2015? If so, what does that indicate? The bad debt expense on Lincoln Electric’s income statement did not equal \($2,700\). What might explain this?

Transcribed Image Text:

Balance Sheet Accounts receivable, net of the allowance for uncollectible accounts of $2,460 and $2,700, respectively.... 2014 2015 $79,500 $75,390