Hunt Company estimates uncollectible accounts using the percentage-of-receivables method and expects that (5 %) of outstanding receivables
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Hunt Company estimates uncollectible accounts using the percentage-of-receivables method and expects that \(5 \%\) of outstanding receivables will be uncollectible for 1999. The balance in Accounts Receivable is \(\$ 200,000\), and the allowance account has a \(\$ 3,000\) credit balance before adjustment at year-end. The uncollectible accounts expense for 1999 will be:
a. \(\$ 7,000\).
b. \(\$ 10,000\).
c. \(\$ 13,000\).
d. \(\$ 9,850\).
e. None of the above.
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Related Book For
Financial Accounting A Business Perspective
ISBN: 9780072289985
7th Edition
Authors: Roger H. Hermanson, James Don Edwards
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