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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Financial Accounting A Business Perspective

ISBN: 9780072289985

7th Edition

Authors: Roger H. Hermanson, James Don Edwards

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